Tourism shares drag down Nikkei amid China-Japan spat over Taiwan
Monday, November 17, 2025       14:36 WIB

Nov 17, 2025, 14:14 GMT+7
By Junko Fujita
Reuters - Japan's Nikkei share average closed slightly lower on Monday, as tourism-related stocks tumbled after China warned its citizens against travel to Japan amid a worsening diplomatic rift over Taiwan.
The Nikkeifinished 0.1% lower at 50,323.91, after rising as much as 0.4% earlier in the session. The broader Topixfell 0.37% to 3,347.53.
On Friday, China warned Tokyo of a "crushing" military defeat if it used force to intervene over Taiwan and warned Chinese citizens against visiting Japan.
Tensions between Tokyo and Beijing have flared up since Japanese Prime Minister Sanae Takaichi said earlier this month that a Chinese attack on Taiwan could amount to a "survival-threatening situation" and trigger a potential military response from Tokyo.
Japanese retailers rely a lot on Chinese tourists, who spend a large amount of money in buying clothing and cosmetics.
Shares of department stores fell, with Isetan Mitsukoshi Holdingsdown 11%. Takashimayalost 6.18%, while cosmetics maker Shiseidofell 9.08%.
Uniqlo-brand owner Fast Retailinglost 5.29% to become the biggest drag on the Nikkei.
"Market reaction to those stocks was a little bit too much. Investors might have priced in all the bad news regarding the relationship between China and Japan," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
"I do not think the sell-off of those stocks would continue."
Lending some support to the market, technology stocks rose as investors snapped up chip and artificial intelligence-related shares on dip.
Chip-making equipment maker Tokyo Electronrose 4.55% to become the biggest support for the Nikkei. SoftBank Groupgained 2.83%.
Mitsui Kinzoku, a maker of data centre materials, jumped 8.87%.
Sumitomo Mitsui Financial Grouprose 4.57% after the country's second-largest banking group posted a 57% rise in July-September quarter net profit on Friday.
Mitsubishi UFJ Financial Groupand Mizuho Financial Groupslipped 1% and 0.26%, respectively, even as they posted higher quarterly net profits.

Sumber : Reuters