Bank stock prices in particular have rebounded significantly. In this situation, long-term interest rates rose after falling to their historic lows of 0.4-0.5 percent. As mentioned, some positive developments were observed, but there remained various structural problems in the Japanese economy.
When demand falls and nominal wages are sticky rather than downwardly flexible, the unemployment cost is cushioned by the higher general rate of inflation, as this effectively lowers the real wages that firms have to pay.