The Japanese stock market closed higher on Monday (July 1) due to positive economic indicators, including increased factory production and improved commercial environment in June, to which investors responded positively. At the close, the Nikkei 225 index rose 0.12%, or 47.98 points, to 39,631.06 points. The TOPIX index rose 0.52% to 2,824.28 points. In terms of sector performance, the rise in insurance, shipbuilding and bank sectors boosted stock prices. Best performing stocks in the Nikkei 225 index were J.Front Retailing Co., Ltd. (TYO:3086), which rose 14.72%, or 247.00 points, to close at 1,924.50 points, followed by Takashimaya Co., Ltd. (TYO:8233), up 11.06%, or 299.50 points, to close at 3,007.00 points, and Kawasaki Kisen Kaisha, Ltd. (TYO:9107), which rose 6.84%, or 160.00 points, to close at 2,500.00 points. Large decliners include Lasertec Corp (TYO:6920), down 3.99%, or 1,440.00 points, to close at 34,650.00 points at the close, Taieru-mo Co., Ltd. (TYO:4543), down 3.96%, or 105.00 points, to close at 2,548.00 points, and Sumitomo Dainippon Pharma Co., Ltd. (TYO:4506), which dropped 3.70%, or 15.00 points, to close at 390.00 points. Nikkei Volatility, a measure of the implied volatility of Nikkei 225 index options, fell 0.31% to 16.13, a six-month low. Based on the fundamentals, Japan's factory production in June increased for the first time in over a year, driven by job creation, backlog reduction and inventory growth. Business sentiment in major industries has also improved. According to the Bank of Japan's latest short-term survey, the business confidence index for large manufacturing companies was +13, up from +11 in March. The index for medium-sized manufacturing companies rose from +6 to +8, while the confidence index for small businesses remained at -1. In the non-manufacturing sector, the business confidence index for the service industry fell slightly from +34 in March to +33, reflecting the decline in retail and real estate. On the other hand, Japan's factory activity remained unchanged in June, with au Jibun Bank Japan Manufacturing PMI staying at 50.0, indicating stable near-zero growth-contraction threshold. Rising input costs led to a price increase, while inflows of raw materials and unsold goods resulted in an inventory increase. The reduced purchasing activity also indicates subdued demand, marking 23 consecutive months of declining procurement trends. The Japanese yen fell to 161.27 on Friday, its lowest level since late 1986, raising concerns among investors and prompting traders to closely monitor possible intervention measures by Japanese authorities. In corporate news, GA Technologies fell 5% after announcing that it will issue 140,800 shares to ORIX Bank through third-party placements at a price of JPY 1,420 per share, totaling nearly JPY 199.9 million. Advance Residence Investment plans to purchase the real estate trust beneficiary rights of Residia Kunitachi for JPY 1.26 billion through borrowing and existing cash reserves. Residia Kunitachi has an appraisal value of JPY 1.35 billion and net operating income of 4.3%. In addition, Japanese companies have disclosed the environmental certification of their properties. Japan Excellent received CASBEE certification for Akasaka Intercity Air. Frontier Real Estate Investment's Mitsui Shopping Park LaLaport Izumi received DBJ green building certification. KDX Realty Investment received CASBEE certification for six properties and DBJ green building certification for one hotel.

At the close, the Nikkei 225 index rose 0.12%, or 47.98 points, to 39,631.06 points. The TOPIX index rose 0.52% to 2,824.28 points. #Japanese market#.

On the market, the rise in insurance, shipbuilding and banking sectors boosted stock prices.

The best-performing stocks in the Nikkei 225 index were:

J.Front Retailing Co., Ltd. (TYO:3086), which rose 14.72%, or 247.00 points, to close at 1,924.50 points;

Takashimaya Co., Ltd. (TYO:8233), up 11.06%, or 299.50 points, to close at 3,007.00 points;

Kawasaki Kisen Kaisha, Ltd. (TYO:9107), which rose 6.84%, or 160.00 points, to close at 2,500.00 points in the final hour of trading.

The largest decliners include:

Lasertec Corp (TYO:6920), down 3.99%, or 1,440.00 points, to close at 34,650.00 points in the final hour of trading;

Taieru-mo Co., Ltd. (TYO:4543), down 3.96%, or 105.00 points, to close at 2,548.00 points;

Sumitomo Dainippon Pharma Co., Ltd. (TYO:4506), which fell 3.70%, or 15.00 points, to close at 390.00 points.

The Nikkei Volatility Index, which measures the implied volatility of Nikkei 225 index options, fell 0.31% to 16.13, a new six-month low.

Fundamentally, Japan's factory production in June increased for the first time in over a year, driven by job creation, backlog reduction and inventory growth.

Business sentiment in major industries has also improved. According to the Bank of Japan's latest short-term survey, the business confidence index for large manufacturing companies was +13, up from +11 in March. The index for medium-sized manufacturing companies rose from +6 to +8, while the confidence index for small businesses remained at -1.

In the non-manufacturing sector, the business confidence index for the service industry fell slightly from +34 in March to +33, reflecting the decline in retail and real estate.

On the other hand, Japan's factory activity remained unchanged in June, with au Jibun Bank Japan Manufacturing PMI staying at 50.0, indicating stable near-zero growth-contraction threshold. Rising input costs led to a price increase, while inflows of raw materials and unsold goods resulted in an inventory increase. The reduced purchasing activity also indicates subdued demand, marking 23 consecutive months of declining procurement trends.

The Japanese yen fell to 161.27 on Friday, its lowest level since late 1986, raising concerns among investors and prompting traders to closely monitor possible intervention measures by Japanese authorities.

In corporate news, GA Technologies fell 5% after announcing that it will issue 140,800 shares to ORIX Bank through third-party placements at a price of JPY 1,420 per share, totaling nearly JPY 199.9 million.

Advance Residence Investment plans to purchase the real estate trust beneficiary rights of Residia Kunitachi for JPY 1.26 billion through borrowing and existing cash reserves. Residia Kunitachi has an appraisal value of JPY 1.35 billion and net operating income of 4.3%.

In addition, Japanese companies have disclosed the environmental certification of their properties. Japan Excellent received CASBEE certification for Akasaka Intercity Air. Frontier Real Estate Investment's Mitsui Shopping Park LaLaport Izumi received DBJ green building certification. KDX Realty Investment received CASBEE certification for six properties and DBJ green building certification for one hotel.