A weaker yen generates suspicion that the Japanese government may not intervene to prop up the yen given some benefits from a weaker currency: surging exports helped economic growth, at an annualised basis, reach 6% in the second quarter, and lower global oil prices have kept a lid on the import bill. Further, the gap between Japanese and U.S. yields underpins the yen s weakness.
Japan s Nikkei share average rose 1.24% to a two-week peak at 32,896.03, supported by solid bank earnings and optimism about the economy, boosted by a rally in the Wall Street. Kawasaki Kisen and Nissan were among the top Nikkei gainers, surging 6.27% and 7.68% respectively.