Japan and South Korea hail agreement

The leaders of Japan and South Korea have welcomed the agreement between their two countries to settle the issue of "comfort women" forced to work in Japanese brothels during World War Two. Japan has apologised and will pay 1bn yen ($8.3m; £5.6m) - the amount South Korea asked for - to fund victims. Estimates suggest up to 200,000 women were sex slaves for Japanese soldiers during WW2, many of them Korean. Other women came from China, the Philippines, Indonesia and Taiwan. The issue has been the key cause of strained relations between Japan and South Korea. Advertisement Only 46 former "comfort women" are still alive in South Korea.

Japanese shares lead Asia's gains in early trade

It was a mixed picture for Asian shares at the start of a week shortened by holidays, amid quiet trade as Japanese shares lead the region's gains. The benchmark Nikkei 225 index was up 0.1% to 18,792.67 despite economic data painting a gloomier picture of the world's third largest economy. Data showed Japan's factory output fell 1% in November from the previous month, marking the first fall in three months. Retail sales also fell below forecasts and declined 1% from a year ago. Japan's economy narrowly avoided a recession in the third quarter and economists are expecting only modest growth in the current one. Advertisement Shares of Sharp, however, were up more than 7% on reports that the struggling consumer electronics firm has received a purchase offer from Taiwan's electronics supplier Hon Hai Precision. Chinese shares were mixed in early trade with the Shanghai Composite flat at 3,629.19, Hong Kong's Hang Seng index down 0.3% to 22,063.11. In South Korea, the Kospi index was down 0.4% at 1,983.42 points. The Australian market is closed for a public holiday.

Japan and South Korea to discuss comfort women issue

Japan and South Korea's foreign ministers are set to discuss the fraught issue of so-called "comfort women", forced to work in Japanese brothels during World War Two. Up to 200,000 women are estimated to have been sexually enslaved by Japan during the war, many of them Korean. It has long strained ties, with South Korea demanding stronger apologies from Japan and compensation for victims. Earlier this year both sides agreed to speed up talks to resolve the row. Japan's Fumio Kishida arrived in Seoul on Monday to meet his counterpart Yun Byung-Se, in what correspondents say is a significant move. Advertisement Analysis - Mariko Oi,Image copyright AFP Image caption South Korean activists for comfort women hold weekly demonstrations outside the Japanese embassy in Seoul "Comfort women" is one of two major historic issues that have strained Japan's relationships with its neighbours - the other is the Nanjing massacre. Few in Japan would disagree that the country's Imperial Army had a prostitution corps during the World War Two. Women were from Japan, Korea, Taiwan, China and other South East Asian nations. The justification of having such a unit was to prevent soldiers from misbehaving. While South Korea and other countries demanded an apology and compensation, one of the main debates in Japan has been whether they should be called sex slaves and if they were forced to work as prostitutes.