It was a rough start to the week in Tokyo: on Monday (Nov 17), shares of Japan's retail and tourism giants took a nosedive after the Chinese mainland's Ministry of Culture and Tourism advised citizens to avoid traveling to Japan. The advisory, a rare move in recent memory, sent ripples through the market, with some of the biggest names feeling the heat. 📉✈️
Beauty brand Shiseido, a favorite among Chinese visitors, saw its shares plunge 11.4%, marking its steepest decline since April. Discount-store operator Pan Pacific International Holdings (Don Quijote) slid 9.7%, the largest drop since August last year.
Department stores couldn't escape the sell-off either: Isetan Mitsukoshi plunged 10.7%, its biggest drop in over a year, while Takashimaya and J Front Retailing both lost more than 6%. Even Tokyo Disneyland's operator, Oriental Land, wasn't immune, falling 5.1%. Fast Retailing, the parent of Uniqlo, fell 6.9%, its worst slide since mid-July, and Japan Airlines dipped 3.9% as travelers reconsidered their plans.
It wasn't just stocks feeling the chill. Chinese audiences eagerly awaiting new Japanese films like "Crayon Shin-chan the Movie: Super Hot! The Spicy Kasukabe Dancers" and "Cells at Work!" saw their release dates postponed indefinitely.
What's behind the advisory? It follows comments made by Japanese prime minister Sanae Takaichi on Nov 7, when she suggested the Japanese Self-Defense Force could exercise collective self-defense if the Chinese mainland "uses military forces against Taiwan." Despite démarches and protests from the Chinese mainland, Takaichi stood by her remarks, which some investors saw as heightening geopolitical risk in the region.
As tensions simmer, markets are on high alert. For Japanese businesses relying on Chinese visitors, the fallout could last weeks or even months—unless travel confidence can be restored. Stay tuned to see how this story unfolds. ✨
Reference(s):
cgtn.com
