Expectations for an economic recovery are running high in Japan on the back of a bullish stock market and a weakening yen.

Japan’s Nikkei index recovered to the 10-thousand-point level in seven and a half months. Foreigners who account for more than 60 percent of stock transactions in Tokyo have been net purchasers of Japanese shares for ten straight weeks.

On the foreign exchange market, the yen-to-dollar rate dropped to 83 yen per dollar for the first time in eleven months.

Japanese media predict that production and consumption are rekindling and that the 243-trillion won worth project to rebuild the eastern part of Japan has begun in earnest. Therefore, they forecast that the Japanese economy will gain steam if external conditions move in favor of Japan.