The links they established with Japanese traders and capital played an important part in this transformation.

"What the market really wants to see is for these countries to use their own money" to stabilize exchange rates, a Japanese trader said.

Japanese traders said they were still very nervous about the crisis in the Middle East.

Japanese traders, however, said that Sumitomo might have initially achieved this stature at a price.

The exchange believes that about 10 percent of its night business comes from Japanese traders.

However, Japanese traders in May still exported more than they imported.

"There was an initial knee-jerk reaction as expected," said a Japanese trader, who spoke on condition of anonymity.

While not denying that bond prices have been hurt by some selling from Japanese traders, many analysts expect foreign investment in dollar-denominated assets to continue.

Generally speaking, Japanese traders were more interested in quick profits, while the Chinese established relationships with customers.

After two long years of pent-up emotions, Japanese traders and investors were able to let it all out on Friday.