Japan has unveiled the world's first "emotional" humanoid robot that can communicate and read people's emotions.

The bug-eyed 120-centimetre tall robot, called Pepper, uses an emotional engine and cloud-based artificial intelligence system that allows it to analyse gestures, expressions and voice tones.

The robot can learn and "understand" human facial expressions and emotions.

Japanese firm SoftBank, which developed the robot, says it can communicate with family members, perform domestic tasks or care for the elderly.

"Pepper is not yet perfect, but he can already understand about 70 to 80 per cent of spontaneous conversations," SoftBank president Masayoshi Son said.

"Pepper could become a very good friend and a powerful tutor for a child, for example.

"He could learn about a family over several years ... and actually become a member of the family."

The robot is also expected to be used by businesses looking to offset labour shortages and rising wage costs.

It was developed by French robot maker Aldebaran Robotics and would be manufactured by Taiwan's Foxconn, a major supplier to Apple.

The robot will sell for about $2,000 and will be on the market from February next year.

Mr Son said the robot may also eventually take on a customer-service role at SoftBank stores, and will start greeting customers at two Tokyo outlets from Friday.

ABC/AFP