Summary
Japanese tourism and retail company shares dropped after China advised its citizens not to travel to Japan, amid tensions between Tokyo and Beijing over Taiwan. The situation escalated when Japan's Prime Minister suggested military action could be taken if China attacked Taiwan.
Key Facts
- Japanese tourism and retail stocks fell after China warned against travel to Japan.
- Japan's Prime Minister, Sanae Takaichi, suggested potential military action if China attacked Taiwan.
- Shares in Japanese companies like Shiseido and Takashimaya dropped significantly.
- China is one of the top sources of tourists for Japan.
- Japan's 2015 security law allows military action if threats are deemed survival-threatening.
- Last week, both countries summoned their respective ambassadors due to the tensions.
- Taiwan is geographically close to Japan and is a point of contention between China and Japan.
- China's view is that Taiwan is a breakaway province, while many Taiwanese see themselves as a separate nation.
