The leaders of South Korea, China and Japan at a summit in Beijing
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China, Japan and South Korea agree free-trade talks

The leaders of China, Japan and South Korea have agreed to start talks on creating a free-trade zone by the end of this year.

The three nations make up almost a fifth of global economic output and trade between them has been booming.

Philip Poole, HSBC's Global Head of Macro & Investment Strategy, says it's a signficant move but many hurdles remain.