Tokyo  - Japan's consumer sentiment improved in March as people expected the nation's employment situations to slowly recover, the government said Friday.

The reading for consumer sentiment among households marked the largest gain since January 2007, up 2.2 percentage points to 28.9 from the month before.

Consumer sentiment "remains severe but is ceasing to deteriorate," the Cabinet Office said as it raised its assessment for the second month.

Tokyo - China has expressed a willingness to mediate in talks between North Korea and the United States on Pyongyang's nuclear programme, a Japanese media report said Friday.

Chinese Foreign Minister Yang Jiechi told the Nikkei financial newspaper, "Maintaining the process is in the interest of each participant" of the six-party talks, which include Japan, South Korea, North Korea, Russia, China and the United States.

Many analysts see a breakthrough in relations between the United States and North Korea as necessary for the resumption of the six-nation talks.

Tokyo  - Japanese electronics giant Toshiba Corp Friday revised its earnings estimate for the previous business year, now predicting a greater net loss due to a price slump in the semiconductor market and tax credit costs.

Toshiba now predicts a net loss of 350 billion yen (3.5 billion dollars) for the business year that ended March 31, up from a previous 280-billon-yen loss estimate. Last business year, Toshiba reported net profits of 127.4 billion yen.

Tokyo  - Tokyo stocks ended morning trading higher Friday on renewed optimism over the US financial sector and the US dollar's advance against the yen.

The benchmark Nikkei 225 Stock Average gained 194.29 points, or 2.22 per cent, to 8,949.55.

The broader Topix index of all first-section issues was also up 15.04 points, or 1.81 per cent, to 847.08.

Tokyo  - Japan and the United States Friday pledged to provide 1 billion dollars each to Pakistan.

"Pakistan plays an extremely important role in the international fight against terrorism and extremism," Prime Minister Taro Aso said at a ministerial-level meeting of the Friends of Pakistan group in Tokyo.

At the opening of the meeting, Aso officially announced Japan's contribution of 1 billion dollars to Pakistan. The United States vowed to donate the same amount.

Tokyo  - Japanese Prime Minister Taro Aso on Thursday told visiting Pakistani President Asif Ali Zardari that stability in Pakistan is important for stability in south-western Asia.

"The stable development of Pakistan will directly lead to the stability of the entire region," the Kyoto News Agency quoted Aso as telling Zardari during a meeting at the premier's office in Tokyo.