Japan, Australia reach deal on free trade

Japan and Australia on Monday said they had reached "substantive agreement" on a long-awaited free-trade deal, in a rare opening of Japan's protected markets, even as talks to ink a huge Asia-Pacific agreement run into trouble. The deal was announced in a press statement as Japanese Prime Minister Shinzo Abe and visiting Australian Prime Minister Tony Abbott held a briefing in Tokyo Monday evening. It "will create significant new trade and investment opportunities for the two countries", the statement said, adding that efforts would be made to sign a final deal "as early as possible". The announcement comes with Canberra also set to sign a free trade pact with Seoul on Tuesday after four years of negotiations. Abbott will head to China after South Korea as part of an East Asian tour, according to AFP.