TOKYO, JAN 18: Japan today sharply criticised the test-firing of longer range Agni II missile by India, saying it might intensify nuclear arms and missile development race in the region while China and Australia were cautious in their reaction.A day after the missile was test-fired successfully, the Japanese government issued a statement saying it was "strongly concerned" about the launch of Agni II.Tokyo, a strong critic of India's 1998 nuclear explosions, said the missile launch "might hamper the moves towards easing of tensions in South Asia and intensify the nuclear arms and missile development race in the region."In Beijing, the foreign ministry said China hoped to see peace and stability and was unwilling to see any form of arms race in the region.Australia, which also reacted sharply against Pokhran nuclear tests, said the missile test was unfortunate but made it clear it would not halt the restoration of military ties between the two countries.Chinese foreign ministry spokesman Zhu Bangzao said in Beijing that "China, together with the international community, hopes to see peace and stability in the region. We are unwilling to see any form of arms race in the region."Asked to comment on the testing of the missile that has a range of 2,000 km, Australian foreign minister Alexander Downer said in Canberra, "We regret the test India has conducted. It is unfortunate they are continuing with the testing of these medium range missiles.""But I am afraid it is part of the ongoing environment in South Asia and we just have to continue to lobby for India as well as Pakistan to exercise greater restraint."He, however, said the return of Australian military attache to New Delhi would proceed as scheduled. The decision to repost the attache in the Australian embassy in New Delhi was announced only five days ago.