The Kuwait Investment Authority (KIA) is planning to double or triple its investment in Japan, according to Mustapha al-Shamali, Kuwait's finance minister.

Kuwait and Japan have also reached an agreement in principle to end or reduce double taxation on interest, dividends, capital gains and other investment income.

Until now China has been the main beneficiary of the KIAâ??s interest in Asia.

Like most other sovereign wealth funds KIA is looking to reduce its exposure to the US and the US dollar but there are only a few other markets and currencies large and liquid enough to pick up the slack.

Many believe the euro may be at an peak while they expect the Japanese yen to appreciate against the dollar. Kuwait's announcement and a planned total investment of $50bn in Japan underscores this view.