While the world will be focused on the G20 Summit and U.S. non-farm payrolls this weekend, there is one event that will top all others for Japan: the vote on who will host the 2020 Olympic Games.
A victory for the Japanese capital would likely boost optimism in the country's economic outlook and could fuel further gains in Japanese stocks.
(Read more: Is Japan's economic recovery gaining traction?)
"Here in Japan, there's tremendous anticipation that Japan will win the Olympic bid, so there is some good news being factored in to the market," Charles Beazely, chief executive and president at Nikko Asset Management told CNBC, adding that he expected the Nikkei to rally to 18,000 over the next 18 months or so.
Tokyo is the favorite to win the bid over rival cities Madrid and Istanbul, given recent anti-government protests in Istanbul and continued concerns over the recession and social unrest in Spain.