Japan and China say they've made real progress towards settling a dispute over oil and gas exploration in the East China Sea.

Speaking after summit talks in Tokyo, Japan's Prime Minister Yasuo Fukuda and Chinese President Hu Jintao say co-operation is their only option and a solution to the long running issue is within sight.

The two leaders have also signed a joint document on future relations between the two countries, increasingly linked by trade and investment.

President Hu Jintao is due to meet a number of former Japanese prime ministers and give a speech at a university in Tokyo.

Mr Hu is on a five day state visit to Japan, the first by a Chinese president in a decade.

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