Japan's economy minister told reporters earlier on Monday the government had received approval from key advisers to remove the state of emergency for all remaining regions.
While Japan has suffered far fewer coronavirus infections and deaths than any of its Group of Seven peers, Abe's handling of the outbreak has reinforced concerns that his government has grown complacent after seven years in power.
"I would like to say that we were able to show the strength of the Japanese model", he added. He said the goal is to balance preventive measure and the economy until vaccines and effective drugs become available.
"Our goal is to create a new normal", he said. "We need a new approach to resume our daily social and economic activity".
Abe also announced a new stimulus plan worth about 100 trillion yen ($930 billion) to provide financial support for companies hit by the pandemic.
The government is expected to approve the budget at a Cabinet meeting on Wednesday.
Tokyo, with its surrounding prefectures of Chiba, Kanagawa and Saitama, has a combined population of about 35 million people and an annual output of 182.2 trillion yen ($1.7 trillion), which in global terms would make it the 11th largest economy on the planet. The new package will include loan programs to reduce the burden of rent for store owners and subsidies for local governments to step up regional measures.
The prime minister initially declared a 30-day state of emergency on April 7 for Tokyo and six other prefectures, including the central port city of Osaka, as the number of COVID-19 infections began to rise. He said Tokyo, Kanagawa and Hokkaido, where the number of infections is still fluctuating, will be watched closely.
On Monday, Matsuya department store, a landmark in Tokyo's posh Ginza shopping district, resumed operations.
Tokyo Governor Yuriko Koike has previously said the capital would move into "stage one" of loosening restrictions, once the state of emergency was removed.
Facilities such as karaoke bars and gyms, which have a history of cluster infections, will continue to be asked to close even in the final phase.