Why Tokyo Olympics will be a 'big deal' for Japan

Will host in 2020

Rob Weatherston, manager of the Old Mutual Japanese Equity fund, has said he is optimistic the Tokyo Olympics in 2020 can power an economic boom for Japan.

Tokyo is to host the Summer Olympics in July 2020, having won the bid in September 2013, causing Asian stocks to soar. Hosting the Olympics has the potential for countries to enjoy significant gains thanks to increased consumer and infrastructure spending. The FTSE 100 saw a 32% gain (in USD terms) in the years between winning the bid and hosting the games in London in 2012, while China's Shanghai Composite index jumped 61% in the run-up to the Beijing Olympics in 2008.  However, this boost is country-specific as troubled Brazil suffered a 41% loss for the Bovespa index, for exampl...