The Tokyo stock exchange has gained 38 percent since January. And economists expect the Bank of Japan's Tankan survey next week to show a solid improvement in business sentiment, possibly to the highest level in three years.
Japanese Prime Minister Shinzo Abe has been rallying support in a vote for the leadership of his Liberal Democratic Party. The win puts him on course to be the country's longest-serving prime minister.
Japan has named its official mascots for the 2020 Tokyo Olympics. The two futuristic creatures, christened Miraitowa and Someity, were picked by schoolkids across the country.
Four Japanese basketballers have been kicked out of the Asian Games in Indonesia for paying prostitutes for sex. The incident is embarrassing to Japan, which is to host the Olympics in two years' time.
Japan's economy grew more than expected in the second quarter, helped by strong household and business spending and a recovery from an earlier contraction. But global trade tensions loom as a major risk to the outlook.
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