Japan Olympic win boosts Abe, but Fukushima shadows linger

TOKYO - Reuters

People celebrate after Tokyo won a bid to host the 2020 Olympics, in Tokyo.

Japan savoured its victory on Monday in the race to host the 2020 Olympic Games, anticipating an economic boost to spur its revival from two decades of stagnation and help it recover from the devastating 2011 earthquake and tsunami.

But while Prime Minister Shinzo Abe’s bold gamble to throw himself into the Tokyo bid paid off handsomely, his claims to have the problems of the crippled Fukushima nuclear reactor under control ran into fresh resistance.

The Japanese capital’s decisive win over rivals Madrid and Istanbul boosts Abe’s fortunes after he put his reputation on the line for the bid, and a brisk gain for Tokyo shares suggests a boon as well for national confidence, a key ingredient in the success so far of Abe’s aggressive pro-growth policies.

Economy to be boosted by $30 billion

The Tokyo bid committee estimates the world’s third-biggest economy will get a boost of more than 3 trillion yen ($30 billion) with the creation of 150,000 jobs. The Nikkei stock index gained 2.5 percent yesterday, while some analysts predict a short-term boost of 10 percent. The examples of the London and Athens suggest a one- to three-month rally after winning the right to host the games.