Japan stocks jump, led by property and banks

(Updates to midmorning)

TOKYO, May 2 (Reuters) - Japan's Nikkei stock average was up 1.7 percent on Friday, at its highest level in two months, with Mizuho Financial Group (8411.T: Quote, Profile, Research, Stock Buzz) and other banks surging after a Wall Street rally prompted in part by growing investor confidence in the U.S. economy. Property developers such as Sumitomo Realty & Development Co Ltd (8830.T: Quote, Profile, Research, Stock Buzz) also forged higher, while Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) and other exporters gained on a stronger dollar.

Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz) climbed after saying it would invest 60 billion yen ($575 million) to build a new toner cartridge plant in the United States. [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."

The benchmark Nikkei .N225 rose more than 2 percent shortly after the open, hitting 14,051.85 to mark the highest level since Feb. 27. At 0036 GMT it was up 242.26 points to 14,009.12.

The broader TOPIX gained 1.9 percent after earlier climbing more than 2 percent.

Sumitomo Realty was up 5.6 percent to 2,645 yen while rival Mitsui Fudosan Co Ltd (8801.T: Quote, Profile, Research, Stock Buzz) rose 3.9 percent to 2,685 yen. Tokyu Land Corp (8815.T: Quote, Profile, Research, Stock Buzz), another major real estate developer, rose 4.3 percent to 779 yen.

Banks also surged, with Mizuho Financial up 4.3 percent to 535,000 yen and top lender Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) up 3.3 percent to 1,137 yen.