However, the Nikkei Stock Average has been unimpressed by the latest figures - in early morning trading in Tokyo the index was down more than 2%.
'Positive contribution'
If Japan's latest quarterly rate were maintained for a full year, the economy would grow 3.7%, figures from the Cabinet Office revealed on Monday.
Cargo containers at port near Tokyo
Japan's central bank has been cautious in its outlook
Japan officially fell into recession last year and there was a dramatic fall in growth in January-March as the world economic slowdown hit Japanese exports hard.
Massive government stimulus measures helped to boost the economy, including cash handouts and subsidies to buy energy efficient cars and home appliances, the BBC's Roland Buerk in Tokyo says.
Manufacturers also benefited from recovering demand in China and other markets.
But Japan could still face a long road to sustainable recovery, our correspondent says.
Junko Nishioka, chief economist at RBS securities, told Reuters the latest figure was "very good".
"The positive contribution of public spending is likely to continue, so I don't think there will be a return to [contraction], as feared by some," the economist added.
European recovery
Japan is heavily reliant on its exports.
The slowdown in the US has hit it hard as American consumers have limited their spending.
In a recent Bank of Japan report, the central bank underlined its cautious view of the economy.
While it said conditions in the Japanese economy had stopped worsening, it warned that unemployment would stay high and consumer spending low.
Last month, the bank forecast that Japan's economy would shrink by 3.4% in the 12 months to 31 March 2010.
The French and German economies both grew by 0.3% between April and June, bringing to an end recessions in Europe's largest economies that have lasted a year.
Analysts had not expected the data, suggesting recovery could be faster than previously expected.
And Hong Kong recorded growth of 3.3% in the three months from April to June.
That data was also better than had been expected, with the government subsequently increasing its forecast for growth in the whole year.
