NEW YORK - CHINESE Premier Wen Jiabao on Wednesday congratulated Mr Taro Aso on his election as Japan's new prime minister, state media reported.

'China and Japan are close neighbours and important nations in Asia and the world,' Mr Wen said while in New York to attend the United Nations General Assembly, according to Xinhua news agency.

'The development of stable and good neighbourly Sino-Japan ties is not only in keeping with the fundamental interests of the two countries and peoples, but also conducive to the peace, stability and prosperity of Asia and the world.'

Mr Aso replaced Mr Yasuo Fukuda, who resigned earlier this month after his ratings plunged. -- AFP