“The fixed [performance] confirms that the economy continued to recover from its pandemic-induced decline, ”wrote Stefan Angrick, senior economist at Oxford Economics, in a research note.
“However, high-frequency data show that momentum began to decline in December in the middle of a pickup in Covid-19 cases.”
Angrick said he expected the measures “would put back, but not derail, the recovery in 2021, especially since an early lifting of restrictions seems likely.”
Japan has also just given its first approval for a coronavirus vaccine, giving the green light to the Pfizer-BioNTech shot. Sunday’s news spurred further hopes that the recovery could pick up speed.
“At this stage, Japan’s prospects look more favorable and downside risks are beginning to fade. Not only are local cases from the third wave past their peak, but the approval of the Pfizer vaccine is a significant development that will enable vaccination. to begin later in the week, “said Shahana Mukherjee, an economist at Moody’s Analytics.
“We maintain a cautiously optimistic view of Japan’s recovery in 2021, provided the vaccine drive takes place without much interruption,” she told CNN Business.
Japan is not the only country to report better GDP data. On Monday, both Thailand and Singapore released solid new figures that helped build investor confidence, according to Jeffrey Halley, senior Asia-Pacific market analyst at OANDA.
“The underlying picture is one of a growing recovery in … Asia [outside of China], “Halley wrote to clients. “The optimistic tone is likely to continue into Europe unless we get some negative headline surprises.”
The FTSE 100 gained 1.4% in early trading in London. Germany’s DAX rose 0.4% and France’s CAC 40 added 1.1%.
CNN’s Junko Ogura in Tokyo contributed to this report.
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