Japan’s tourism, retail stocks slide as China issues travel warning amid Taiwan row

KUALA LUMPUR: Japanese shares tied to tourism and retail fell sharply on Monday after China warned its citizens against travelling to Japan, a move that underscores mounting friction between Tokyo and Beijing over Taiwan.

The advisory follows remarks by Japanese Prime Minister Sanae Takaichi suggesting Tokyo could consider military action if Beijing attacked the self-ruled island.

Department store operator Isetan Mitsukoshi Holdings led losses, down 11.3%, while its rival Takashimaya slid 6.2%. Cosmetics maker Shiseido fell 9.0%. Fast Retailing, owner of Uniqlo, dropped 5.3% while Oriental Land, operator of Tokyo Disneyland, was down 5.7% while Japan Airlines slid 3.7%.

China is Japan’s biggest source of foreign tourists, accounting for almost one-quarter of the 31 million arrivals in the first nine months of this year, according to the Japan National Tourism Organization.

Relations have soured since Takaichi suggested earlier this month that Japan’s military could intervene to prevent China from taking control of Taiwan. China’s Foreign Ministry said Takaichi’s remarks had “seriously damaged the political foundation of China-Japan relations” and urged Tokyo to retract the “wrongful remarks.” The ministry added that China has lodged, and will continue to lodge, formal representations over the statements.

Japan’s top official for Asia-Pacific affairs, Masaaki Kanai, arrived in Beijing for talks aimed at tamping down tensions. Japanese media reported he is expected to meet his Chinese counterpart Liu Jinsong to clarify that Tokyo’s security policy remains unchanged.

China also confirmed that Premier Li Qiang has no plans to meet the Japanese prime minister during the upcoming G20 summit.

Japan has long expressed concern over China’s threats toward Taiwan due to the island’s proximity to Japanese territory and its location along key maritime trade routes.