RIO DE JANEIRO (Kyodo) -- The leaders of Japan and Brazil on Tuesday agreed to pursue more reciprocal trade and investment while pledging to discuss ways to cooperate on developing a win-win framework between Japan and the South American Mercosur trade bloc.

Japanese Prime Minister Shigeru Ishiba told Brazilian President Luiz Inacio Lula da Silva that Japanese firms have a strong interest in a wide range of areas such as biofuels and natural resource development, adding there is much potential for bilateral trade and investment, according to the Japanese government.

In their meeting on the fringes of the Group of 20 summit in Rio de Janeiro, Lula expressed "high hopes" for Japanese investment while Ishiba identified strengthened relations with the Mercosur nations of Brazil, Argentina, Paraguay, Uruguay and Bolivia as being key to that end.

Lula added he hopes to cooperate with Ishiba in various fields as the two countries mark the 130th year of the establishment of bilateral ties next year.

The two leaders also discussed cooperation in their response to Russia's invasion of Ukraine and the conflict in the Middle East, according to Japan.