It was his first New Year message since he announced in August that his advancing age and weakening health mean he may no longer be able to carry out his duties, setting the stage for Japan to prepare for an historic abdication.
The Imperial Palace said some 58,600 people attended his address in fine weather, many waving small Japanese flags and shouting "Banzai" or "Long live".
Deliberations over his retirement wish are under way in an advisory panel set up by Prime Minister Shinzo Abe in September to study a possible legal mechanism for a royal departure, which currently does not exist.
Any eventual move by Akihito to step down, which would see him replaced by his eldest son Crown Prince Naruhito, appears to have wide support, according to recent opinion polls.
Speculation about Akihito's future emerged last year with reports he had told confidantes that he would like to step down in a few years, in what would be the first abdication from the Chrysanthemum Throne in two centuries.
Akihito has keenly embraced the role of symbol of the state imposed after World War II ended. Previous emperors including his father, Hirohito, had been treated as semi- divine.
Akihito is credited with seeking reconciliation both at home and abroad over the legacy of the war fought in his father's name, venturing to a number of locales that saw intense fighting, including Okinawa in Japan and Saipan, Palau and the Philippines overseas, offering prayers for the souls of all the dead.
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