Dubai's financial troubles and announcements that it would be unable to repay its billions of dollars worth of debts for quite some time now had hit market all over the world, including the Japanese markets, which are still recovering from the recession hurt. But the stock markets today, including the benchmark Topix, nudged higher on speculations that the impact of debt difficulties of the Emirates will be limited on the country's economy.

Stocks of the giant Mitsubishi UFJ Financial Group Inc. gained 8.6% in market value, and went on to become the highest traded shares in Tokyo trading, Both Mizuho Financial Group Inc. and Kajima Corp. gained 9.5% and 3.1%, respectively. With the rise Mizuho became the biggest gainer on the Nikkei 225.

Kajima's gain, however, has come as a surprise to many as the company currently holds a contract to build a yet unnamed train system in Dubai. The gain is seen as a direct result of UAE's central bank committing to support its banks if Dubai World, the Emirate's biggest corporate, defaults.

"Investors are buying back shares as there's expectation the impact of the Dubai shock won't spread. People had feared the Dubai shock would upset the recovery of emerging nations and cause a double bottom in the global economy", shared Hideo Arimura, a Senior Fund Manager at Mizuho Asset Management Co.

Economists around Japan are now heaving a sigh of relief and hoping for the situation to remain the same.