Official figures show that Japan's economy grew for the first time since early 2008 in the three months from April to June, following Germany and France out of recession.
Japan's economy, the second largest in the world, grew by 0.9% in April-June, after shrinking by a revised 3.1% in the first quarter and by 3.5% in the fourth quarter of 2008, the Cabinet Office said.
On an annualised basis, Japan's gross domestic product grew by 3.7% in the second quarter.
Japan plunged into recession in the second quarter of 2008 as a severe global downturn hit demand for its cars, electronics and other goods. The worst of the slump in foreign demand now appears to be over. Japan's exports climbed 6.3% in the three months - the first increase in five quarters.
Japan, which was hit particularly hard by the global economic downturn, has exited recession before the US, which shrank 1% in the second quarter of 2009, according to an official estimate.
Japan's economy is benefiting from an economic recovery in its biggest trading partner, China, which enjoyed a stunning turnaround in the second quarter of 2009, helped by huge government stimulus spending.
Tokyo has also launched a series of pump-priming packages - including cash hand-outs - to cushion the blow of rising unemployment, which hit 5.4% in June, approaching its post-World War II high of 5.5%.
The news failed to boost the stock market, however, with shares tumbling 3.1% this morning, weighed down by heavy losses on Wall Street and a stronger yen. The Nikkei-225 index dropped 329 points to close at 10,269.
