"Japan's economy is expected to continue recovering moderately as improvements in job and income conditions continue," Ishihara said in a statement issued after the release of first-quarter gross domestic product (GDP) data.

"But we need to be mindful of the effects of developments in China and other emerging economies ... as well as market volatility," he said.

(Reporting by Leika Kihara and Tetsushi Kajimoto; Editing by Chang-Ran Kim)