Latest statements from China and Japan raise concerns

China said it is "highly concerned" over Japan's future direction under the Shinzo Abe-led Liberal Democratic Party, which won the country's parliamentary elections. 

Chinese Foreign Ministry spokesperson Hua Chunying told reporters at a regular briefing that Beijing is highly concerned about which direction Japan will take. 

This comes after incoming the Japanese prime minister said there could be no compromise on the sovereignty of islands at the centre of a dispute with China. 

Mr Abe said the Senkaku islands- as they are known in Japan - are the country's inherent territory. 

He added that Japan owns and controls the islands under international law. 

As Mr Abe's thumping majority gives him freedom to push his hawkish foreign policy agenda, 

Analysts say Japan's powerful business lobby may temper his more extreme instincts, particularly on China. 

Japanese political experts said Mr Abe was aware of the need to navigate carefully and knows the importance of ties with business circles. 

They added that Mr Abe's hands would be constrained by manufacturing powerhouses such as Toyota and Sony, which have bases in China and enjoy the fruits of its huge market.