After three weeks of heavy selling in Japan's equity market, not to mention volatility in government bonds, a degree of stability is now expected to return with stronger-than-expected economic data helping along the way.
The benchmark Nikkei 225 stock index closed almost 5 percent higher on Monday, helped by news that Japan's annualized gross domestic product growth (GDP) rose 4.1 percent in the first three months of the year, revised higher from a preliminary estimate of 3.5 percent.
(Read More: Japan Revises First Quarter Growth Figures Upwards)
"The GDP data blew the doors off with a 4.1 percent rise – where else are you getting that kind of growth?," said Nicholas Smith, Japan strategist at the brokerage CLSA in Tokyo.
Volatility has characterized trade in Japanese markets over the past three weeks, with concerns about an early end to the U.S. Federal Reserve's monetary stimulus program, instability in the JGB market and some caution about Japan's economic policies knocking the Nikkei off a 5-1/2 year high hit May.
"Volatility is contagious but it's hard to be sustained if it's just market volatility and not deterioration in economic conditions," said Tim Condon, head of Asia research at ING Financial Markets.
"Today's [Monday's] data are good and a hopefully a sign that 'Abenomics' will work," he said referring to the radical economic policies of Japanese Prime Minister Shinzo Abe that have helped brighten the outlook for the world's third biggest economy.
The rebound in the Nikkei pulled Japan's blue-chip stock index further away from the bear-market territory it flirted with on Friday after registering a fall of more than 20 percent from May's peak.