Olympics-Tokyo’s bid a high-stakes gamble for Japan PM, Abenomics

Tokyo’s bid for the 2020 summer Olympics is not just a matter of pride for the Japanese capital. It’s a high-stakes gamble for Prime Minister Shinzo Abe, who has put his prestige on the line.

The right to host the games, to be decided on Saturday in Argentina, would likely boost Abe’s popularity, and could potentially spur his signature pro-growth policies for the world’s third-biggest economy.

A successful Tokyo bid would boost confidence - a key ingredient of Abe’s economic success so far - and bring real gains in terms of construction and tourism. Failure could dent Japan’s stock markets in the near term, analysts say, causing complications for Abe.

The premier made the Tokyo bid personal on Thursday, breaking away early from a Group of 20 summit in Russia - a highly unusual move for a Japanese leader - to make a last-ditch plea to the International Olympic Committee (IOC) in Buenos Aires to choose Tokyo over rivals Madrid and Istanbul.

Tokyo had been seen as a safe choice ahead of Istanbul, which was rocked by violent anti-government protests this year and doping bans on dozens of its athletes, while Madrid was plagued with high unemployment, deep recession and the resulting social unrest.

But in recent weeks, Japan has returned to the global headlines with a series of damaging disclosures about the crippled Fukushima nuclear plant 230 km (140 miles) from Tokyo. The plant’s operator has been forced to reverse denials and admit that hundreds of tonnes of radioactive water are pouring into the Pacific Ocean each day, and radiation levels have spiked.