Japan PM floats East Asia group plan with China

The summit, on the sidelines of the UN General Assembly in New York, was also Hatoyama's diplomatic debut, after his untested Democratic Party won a landslide election victory last month.

Japan's relations with its Asian neighbours have often been fractious, partly because of its history of invading and occupying much of the region before and during World War Two.

"I spoke about the relationship based on fraternal feeling that I would like to build with China," Hatoyama told reporters after the meeting.

"While recognising one another's differences, we should overcome them and build a relationship of trust," he added. "That would be the focus of the East Asian community I want to build."

Hatoyama, who has said he wants to steer a more independent course from the United States and build closer links with Asia, has long advocated an East Asian community with a single currency, though admitting this would take time to bring about.