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According to Bloomberg, the Nikkei 225 stock average was up two per cent to 9,693.73 by the close of trading in Tokyo.
This growth was helped by the publication of government research showing factory output is expected to rise by eight per cent and 7.7 per cent in June and July respectively.
Yoshinori Nagano, senior strategist at Daiwa Asset Management, said: "Today's figures are significant because they confirm that production is coming back."
As well as increased manufacturing levels, a stronger euro and reported progress on the Greek bailout package have been identified as key factors in the Nikkei's growth.
Reuters noted that the news Germany will shut all nuclear reactors over the next 11 years led to significant gains for solar energy shares in Japan.
Posted by Chris Weaver
