The shift among investors toward Japanese stocks -- the primary catalyst for the yen's rise in recent weeks -- has helped drive the Nikkei average back above the key 11,000 level.

The 225-issue Nikkei average closed Tuesday at 11,792.44, a striking increase from last month when it languished below 9,500.

Both domestic and foreign institutional investors piled into the Tokyo stock market shortly after the government unveiled a package of measures to fight deflation late last month.