Japan acknowledged Tuesday that it could buy up to 10 billion U.S. dollars worth of Chinese government bonds, a move that can be mutually beneficial for both Asian economic powerhouses.

Japanese Finance Minister Jun Azumi said his country and China would discuss the possibility of purchasing each other's bonds during Prime Minister Yoshiko Noda's visit to Beijing next week.

Tokyo could use 10 billion dollars of its foreign exchange reserves to buy Chinese bonds. It will be the first time for Japan to buy the yuan-denominated bonds.

(Source: Xinhua)