"Shares in Japanese tourism and retail companies have fallen today, after China advised its citizens to avoid travelling to Japan. This move by Beijing escalated a diplomatic feud sparked by comments from Tokyo's new prime minister, Sanae Takaichi, on the possibility of deploying forces in the event of a hypothetical Chinese attack on Taiwan. This triggered a wave of selling across Japanese leisure stocks."
"Shares in Oriental Land, which operates Tokyo Disneyland, have fallen by 5.7% today. Department store chain Isetan Mitsukoshi, which makes substantial sales to Chinese visitors, has tumbled by 11.3%. Travel stocks were hit too, with Japan Airlines falling 3.75%. Masahiko Loo, a senior fixed income strategist at State Street Investment Management in Tokyo, explains: The ChinaJapan dispute over Taiwan and Beijing's advisory discouraging travel to Japan introduces near-term headwinds for consumer-facing sectors."
Japan's economy contracted, with GDP falling 0.4% in July–September, marking the first decline in six quarters. Exports were a primary drag, down 1.2% from April–June and 4.5% year-on-year, with US tariffs contributing to weaker demand. A diplomatic dispute with China rose after comments by Prime Minister Sanae Takaichi about possible deployments in a hypothetical Chinese attack on Taiwan, prompting Beijing to advise citizens to avoid travelling to Japan. The advisory sparked sharp selling in leisure and consumer-facing stocks, including Oriental Land (-5.7%), Isetan Mitsukoshi (-11.3%) and Japan Airlines (-3.75%). Chinese visitors comprise roughly 25% of inbound traffic, heightening sector vulnerability.
Read at www.theguardian.com
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