Japanese tourism- and retail-linked stocks tumbled on Monday after China issued a warning advising its citizens to avoid travelling to Japan, amid escalating tensions between Tokyo and Beijing over Taiwan.
The downturn followed remarks by Japanese Prime Minister Sanae Takaichi, a longtime critic of China’s military actions, who recently suggested that Japan could invoke military measures if Beijing launched an attack on Taiwan.
Major retail stocks were among the hardest hit. The parent company of the Mitsukoshi and Isetan department stores plunged more than 10%, while shares of cosmetics giant Shiseido also recorded sharp declines. China has traditionally been one of Japan’s largest sources of inbound tourists, amplifying concerns over the travel advisory.
In Tokyo’s morning trading session, shares of Takashimaya as well as Fast Retailing, the owner of Uniqlo, fell more than 5%. Airline operators Japan Airlines and ANA Holdings also dipped, while Oriental Land — the operator of Tokyo Disney Resort — slid around 5%.
The sell-off comes as the diplomatic dispute intensifies. Over the weekend, China urged its citizens to reconsider studying in Japan, citing alleged safety risks and a rise in crimes targeting Chinese nationals. The Education Ministry also advised Chinese students already in Japan to stay alert and monitor developments closely.
Official data shows that more than 100,000 Chinese students were enrolled in Japanese educational institutions last year.
Several Chinese airlines, including China Southern, China Eastern, and Air China, have since offered refunds for Japan-bound flights.
Tensions rose further after Takaichi told parliament on 7 November that any use of force or deployment of warships by China could qualify as a “survival-threatening situation” under Japan’s 2015 security law — a designation that allows the country’s Self-Defense Forces to respond militarily if an attack on an ally endangers Japan.
The situation has split public opinion. A Kyodo News poll released Sunday found Japanese voters divided over whether the nation should exercise its right to collective self-defence if China attacks Taiwan.
Chinese and Japanese officials are scheduled to meet on Tuesday for talks.
Chief Cabinet Secretary Minoru Kihara said China’s latest actions run counter to the leaders’ shared commitment to building a stable and mutually beneficial bilateral relationship.
Beijing considers Taiwan a breakaway province destined to be reunited with the mainland, including by force if necessary. However, most Taiwanese identify as part of a separate nation and prefer maintaining the status quo without declaring independence or unification.
