Updates

** Shares of major U.S. banks leap in morning trading as Republican Donald Trump elected president; S&P 500 Banks index .SPXBK advances 8.6%

** Goldman Sachs GS.N, Wells Fargo WFC.N, Morgan Stanley MS.N gain between 10.3% and 13%

** JPMorgan Chase JPM.N, Citigroup C.N and Bank of America BAC.N jump between 6.5% and 9.6%

** Analysts have said a Trump win could lift banks on improved domestic investment, looser regulations, domestic job additions and tax cuts

** "U.S. banks were in demand as the prospect of looser regulation, more economic activity, higher interest rates and more business investment all create a more vibrant backdrop," says Dan Coatsworth, investment analyst at AJ Bell

** A Republican presidency could also usher in a lenient antitrust environment for multi billion-dollar deals

** "Banks are a good Trump trade because not only do they presumably benefit from the deregulatory push that comes with Trump but also it was pretty simple that they have less of a tariff risk," says Scott Chronert, U.S. equity strategist, Citi

** U.S. Treasuries yields, which move inversely to prices, also surged as Trump has promised tax cuts that could boost the budget deficit US/

** Treasury yields often serve as benchmarks for the interest rates banks charge on loans

** Meanwhile, Reuters reports citing a source that JPM CEO Jamie Dimon will remain at the bank and has no plans to join the Trump administration despite questions about whether he would take a senior government role

** As of last close, SPXBK up ~26% YTD, outperforming a ~20% rise in the benchmark S&P 500 index .SPX

(Reporting by Manya Saini, Niket Nishant and Medha Singh in Bengaluru)

((Manya.Saini@thomsonreuters.com))