Japanese tourism and retail stocks tumbled on Monday after China warned its citizens against traveling to Japan, amid rising tensions between Tokyo and Beijing over Taiwan. Prime Minister Sanae Takaichi, known for her strong stance on China’s regional military activities, recently suggested that Japan could take military action if Beijing launched an attack on Taiwan. Her remarks have further strained relations between the two countries.
The travel warning from Beijing triggered sharp declines in Japanese share prices, especially among companies reliant on Chinese consumers. Shares in the parent company of the Mitsukoshi and Isetan department store chains plunged nearly 12%, while cosmetics giant Shiseido also suffered heavy losses. Takashimaya and Fast Retailing, the owner of Uniqlo, both closed more than 5% lower. Airline stocks followed suit, with Japan Airlines and ANA Holdings slipping in early trading. Theme park operator Oriental Land, which manages Tokyo Disney Resort, ended the day down 5.8%.
The Chinese government escalated its advisory on Sunday, urging students to reconsider plans to study in Japan and warning of an alleged rise in crimes targeting Chinese nationals.
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