Tokyo  - Tokyo stocks on Tuesday extended their winning streak into a third day on optimism that government stimulus measures and central bank policies would pump life into the world's second-largest economy.

The benchmark Nikkei 225 Stock Average jumped 114.67 points, or 1.49 per cent, to 7,818.82.

The broader Topix index of all first-section issues was also up 10.9 points, or 1.47 per cent, at 752.59.

On currency markets at 9 am (0000 GMT), the dollar traded at 98.22-27 yen, almost unchanged from Monday's 5 pm quote of 98.25-27 yen.

The euro traded at 1.2972-77 dollars, up from late Monday's quote of 1.2945-47 dollars, and at 127.45-50 yen, up from 127.19-23 yen. (dpa)