Tokyo  - The Japanese market extended gains Thursday as optimism spread that China's economic stimulus measures may help the world economy to recover.

As the National People's Congress, the nominal parliament of the ruling Communist Party, opened Thursday in Beijing, Japan's benchmark Nikkei 225 Stock Average jumped 196.9 points, or 2.7 per cent, to 7,487.86.

The congress is expected to focus on measures to boost China's economy to overcome the global downturn.

The broader Topix index of all first section issues was also up 16.3 points, or 2.23 per cent, to 748.34.

On currency markets at 9 am (0000 GMT), the dollar traded at 98.98-99.03 yen, up from Wednesday's 5 pm quote of 98.82-84 yen.

The euro traded at 1.2639-44 dollars, up from late Wednesday's quote of 1.2509-12 dollars, and at 125.14-19 yen, up from 123.63-67 yen. (dpa)