Japanese Deputy Prime Minister Taro Aso on Wednesday retracted a remark to lawmakers of his faction in the ruling Liberal Democratic Party that could be interpreted as a defence of Adolf Hitler's motive for genocide during World War Two.

Tuesday's comment by Aso, who also serves as finance minister, drew criticism from a U.S.-based Jewish group. The incident followed a rare June apology by Japan's central bank over a board member's praise for Hitler's economic policies.

"It is clear from my overall remarks that I regard Hitler in extremely negative terms, and it's clear that his motives were also wrong," Aso said in a statement.

Aso said he wanted to stress the importance of delivering results, but not defend Hitler.

"It was inappropriate that I cited Hitler as an example and I would like to retract that."

Aso is no stranger to gaffes, having retracted a comment in 2013 about Hitler's rise to power that was interpreted as praising the Nazi regime.

Referring at the time to Japan's efforts to revise its constitution, he said the constitution of Weimar Germany had been changed before anyone realised, and asked, "Why don't we learn from that technique?"

On Tuesday, Kyodo news agency quoted Aso as saying, "I don't question your motives (to be a politician). But the results are important. Hitler, who killed millions of people, was no good, even if his motives were right."