The leaders of Japan and Australia agreed Wednesday on the necessity of five-nation talks on the North Korean nuclear issue and the importance of liberalizing bilateral trade.

They also said "dialogue and pressure" are needed to resolve the North Korean nuclear standoff.

During their meeting, Prime Minister Junichiro Koizumi and visiting Australian Prime Minister John Howard signed a joint statement on antiterrorism measures and an economic framework agreement aimed at boosting bilateral trade in the areas of food, information technology and customs cooperation.