Exchange traded funds that invest in Japanese stocks have been rising the past few weeks in a bid to regain the February high before the earthquake and tsunami rocked the country.

Japan equity ETFs have been strengthening along with the currency, the yen. For example, CurrencyShares Japanese Yen Trust (NYSEArca: FXY) rose to a new record high on Tuesday. [A Technical Look at Japan’s ETFs.]

Concern over the U.S. debt ceiling, and the aftermath of the March quake, are not expected to keep earnings down for major Japanese companies set to report this week.

“Companies thought the recovery from the quake will take longer, but earnings are coming back quickly,” said Naoki Fujiwara, who helps oversee $6 billion at Shinkin Asset Management Co. in Tokyo, according to a Bloomberg report. “More and more companies will raise earnings forecasts, even after factoring in the impact from the yen’s rise.”

The iShares MSCI Japan (NYSEarca: EWJ) has gained 7% over the past month but is flat for the year. WisdomTree Japan Small Cap Fund (NYSEArca: DFJ) is up 4.4% so far in 2011, according to Morningstar.

Meanwhile, Japanese Finance Minister Yoshihiko Noda is warning that the yen is rising rapidly and may put pressure on the export-driven economy. [Strong Japanese Yen ETF Puts Country in a Quandry.]

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