TOKYO: Tens of thousands of cheering Japanese gathered in the Imperial Palace in Tokyo on Saturday to hear Emperor Akihito pray for the nation's happiness and world peace in his traditional New Year address.

"I'm pleased to celebrate this new year together with you," the 76-year-old monarch said, speaking in bright sunshine from a balcony protected by bulletproof glass.

"Marking the beginning of this year, I wish people happiness and the world peace," Akihito said as crowds shouted "Banzai" (long live) and waved Japanese flags.

Over 47,000 people, mostly elderly Japanese, were at the palace for the event, where imperial family members including Crown Prince Naruhito and Crown Princess Masako waved to the cheering crowds.

Akihito, who marked the 20th anniversary of his reign last year after taking over from his father Hirohito, who died on January 7, 1989, has been restricting his official duties in recent years.

The role of Japan's emperor was reduced to a ceremonial one after Hirohito renounced his divinity and his status as military commander in chief after World War II.

On Friday, Akihito used his separate New Year statement to express sympathy with those caught up in Japan's worst recession in decades.

"Last year, many people faced hardships due to the continuing severe economic conditions, and my heart goes out to them," he said.

"I hope that everyone will help one another and support each other to overcome the challenges they are facing."

In 2009 Japan's economy spiralled downwards, forcing employers to cut jobs as consumers kept a tight grip on their purse strings.