Japan stocks power up to 2-mth high, property strong

(Updates to midday)

TOKYO, May 2 (Reuters) - Japan's Nikkei benchmark powered up by 1.8 percent on Friday to its highest level in two months, with banks and property firms such as Sumitomo Realty and Development Co Ltd (8830.T: Quote, Profile, Research, Stock Buzz) advancing after U.S. stocks rallied on the back of growing investor confidence. A stronger dollar helped exporters such as Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz) rise. Canon gained additional upward impetus after it said it would invest 60 billion yen ($575 million) in a new toner cartridge plant in the United States to buffer the impact of currency fluctuations and rising transport costs. [ID:nT153178]

"Sentiment about the U.S. economy is brightening a bit and stocks appear to be rising on long-term hopes about this, even though there is still some concern about the jobs data due out later today," said Yumi Nishimura, manager at Daiwa Securities SMBC.

"Some profit-taking is emerging above 14,000 but there's no sense of significant selling."

But market players were wary and trade remained light ahead of an extended Japanese holiday from the weekend, with markets closed on Monday and Tuesday. They will reopen on May 7.

"There's been a history this year of big things happening in overseas markets while Japan's been on vacation, and this is making investors leery of taking out significant positions," said Masayoshi Okamoto, head of dealing at Jujiya Securities.

"The rise today is mainly short-covering, with what buying there is mainly from day traders. But if we can hang onto the 14,000 level for the Nikkei at the close, things look good for next week." The Nikkei .N225 gained 247.54 points to 14,014.40, its highest level since Feb. 27. At one point it rose as high as 14,051.85, more than 2 percent.

The broader Topix was up 1.8 percent at 1,370.77 after also rising 2 percent.

PROPERTY POWERFUL, BANKS BOOSTED