Japan – Japanese stock markets linked to the tourism and retail sectors saw a sharp decline on Monday. This came after the Chinese government urged its citizens to reconsider travel to Japan, amid ongoing tensions and a diplomatic row between Tokyo and Beijing over Taiwan.
This warning comes after comments made this month by Japanese Prime Minister Sanae Takaichi, a vocal critic of China, in which she indicated that Tokyo might take military action if Beijing launched an attack on Taiwan.
vital sectors were damaged
Shares in major retailers and companies reliant on Chinese tourists were hit hard. These tourists have long been Japan’s top source of visitors, and their numbers have seen significant declines.
Department Stores: Shares of the parent company of Mitsukoshi and Isetan fell by about 12%. Shares of Takashimaya department store chain also closed down by more than 5%.
Famous brands: Shares of cosmetics company Shiseido have fallen sharply.
Travel and leisure: Shares of Japan Airlines and ANA Holdings both declined. Oriental Land, which operates Tokyo Disney Resort, also ended the day down 5.8%.
Fashion: Shares of the owner of the global fashion chain Uniqlo closed down by more than 5%.
Chinese call to avoid Japan
The stock price decline came after tensions between Beijing and Tokyo escalated in recent days. On Sunday, the Chinese government urged its citizens to reconsider studying in Japan, citing “risks to their safety and a rise in crimes targeting Chinese nationals.” The Chinese Ministry of Education also instructed the more than 100,000 Chinese students enrolled in Japanese educational institutions to closely monitor the security situation.
In a move reflecting the tension, Chinese airlines, including China Southern, China Eastern, and Air China, offered refunds over the weekend for canceled flights to Japan.
