Beijing - Beijing on Tuesday rejected Japanese protests against two Chinese ships entering the waters around a group of disputed islands in the East China Sea.

The Diaoyu Islands have been part of China since "ancient times" Liu Jinachao, a Foreign Ministry spokesman, was quoted as saying by the official Xinhua news agency.

"The usual cruising of the Chinese ships within Chinese seas is irreproachable," he said.

The islands, a source of bilateral tension for many years, are called Diaoyu in China and Senkaku in Japan.

Japan has held the islands since China9s defeat in the Sino-Japanese War in 1895, but they are also claimed by China and Taiwan.

Tokyo  - Japanese stocks rose Tuesday despite a revised government estimate outlining an annualized third-quarter gross domestic product decline of 1.8 per cent.

Driven up by gains on Wall Street and a rally in commodities the benchmark Nikkei 225 Stock Average was up 40.38 points, or 0.48 per cent, to 8,369.43 by mid-trading.

The broader Topix index of all first-section issues rose 5.8 points, or 0.71 per cent to 817.88.

On currency markets at 9 am (0000 GMT), the dollar was quoted at 93.00-03 yen, compared to Monday's 5 pm quote of 93.01-03 yen.

Tokyo  - Japanese gross domestic product declined in the third quarter by an annualized 1.8 per cent, according to a revised government estimate, contracting more sharply than in an earlier, initial estimate.

For the July-September period, the Japanese government had initially estimated a contract at an annualized rate of 0.4 per cent.

The sharper contraction only confirms a second quarter of shrinking GDP, clarifying that Japan's economy has plummeted into the textbook definition of recession.

Tokyo - Just ten weeks after taking office, Japanese Prime Minister Taro Aso finds himself under growing pressure, with approval ratings dropping below 25 per cent, according to latest surveys.

Levels that low indicate that an administration's life signs have reached the critical stage. The first calls for Aso's resignation have started to filter in.

In light of the survey results, Aso spoke Monday of a "very serious" situation. "I think it indicates criticism that we are not living up enough to expectations about measures against the slumping economy and the deteriorating job situation," he was quoted as saying.

Tokyo - Asian stockmarkets surged Monday on renewed optimism related to large-scale economic stimulus plans by the United States and China.

Japan's benchmark Nikkei 225 Stock Average closed up 411.54 points, or 5.2 per cent, to 8,329.05, the biggest gain in almost two weeks, carrying over Friday's positive sentiment on Wall Street.

Investors speculated that US demand was to rebound soon, after president-elect Barack Obama pledged the biggest public works programme in more than 50 years.

The broader Topix index of all first-section issues rose 26.06 points, or 3.32 per cent, to 812.08.

Tokyo - Japan on Monday lodged a protest with the Chinese government, saying two Chinese ships which entered Japanese waters surrounding a group of disputed islands in the East China Sea had to withdraw immediately.

The maritime survey ships entered the waters around the islands, which are known as Senkaku in Japan and Diaoyu in China, earlier Monday, the Kyodo News agency said.

"Such activity is extremely regrettable and we demand immediate withdrawal," Chief Cabinet Secretary Takeo Kawamura said. "The Ministry of Foreign Affairs quickly lodged a protest with the Chinese government."