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From Bloomberg Market Concept (BMC), in 2013, Japan is traditionally a heavy exporter, especially automobiles. When the yen being weakened, the Japanese automobile being more attractive because it seems to be cheaper to the target market.BMC also documented that "The automobile won more order as a result, so the stock market went up."

Why the stock market went up, is it because investors optimistically value these firms because of better performance? And the result seems to be triggered by the reduction in the value of the yen compared to USD, so the stock market went up, but whether the Japanese stock market still went up if the stock price being calculated in USD?

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  • $\begingroup$ Another facor that may have something to say: QE drives up the stock prices and in 2013 Japan started a round of QE: theguardian.com/business/2013/apr/04/…. $\endgroup$
    – Andy
    Commented May 2, 2021 at 4:22

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Quoting from the question

When the yen being weakened [...] "The automobile won more order as a result..."

and more orders made the automobile sector more profitable, hence the higher stock price.

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