TOKYO (REUTERS) - Japan's economy expanded at an annualised pace of 3.9 per cent in the first three months of this year, revised up from an initial estimate of 2.4 per cent growth, government data showed on Monday.

The revised figure compared with a median market forecast for 2.7 per cent growth in real, price adjusted-terms.

On a quarter-on-quarter basis, gross domestic product rose a revised 1.0 per cent in January-March, compared with a preliminary reading of a 0.6 per cent increase, the Cabinet Office data showed.

Japan's current account also logged a surplus for the 10th straight month in April, Ministry of Finance data showed on Monday, as a weak yen boosted income from overseas investments. The current account surplus stood at 1.3 trillion yen (S$14.3 billion), against a median forecast for a 1.7 trillion yen surplus.

The data is welcome news for the government and the Bank of Japan, which are hoping that expectations of a steady economic recovery will spur companies and households to boost spending.

A pick-up in capital expenditure is key for the success of premier Shinzo Abe's stimulus policies, which aim to reflate the economy out of stagnation by changing companies' perception that deflation will persist.