The Japanese equity market rose in July, with the TOPIX (w/dividends) climbing 1.30% on-month and the Nikkei 225 (w/dividends) rising 1.12%. Stocks started the month lower amid anxiety over intensifying trade tensions between the US and China. However, the market subsequently moved upward on several factors including: the yen weakening against the US dollar in reaction to strong US economic indicators; expectations that China’s economy will be supported by government stimulus measures to boost domestic demand; and receding concerns over trade issues between the US and EU after both agreed to discuss eliminating tariffs on industrial products other than automobiles.