Japanese tourism and retail shares dived on Monday after China warned its citizens to avoid the tourist hotspot in a spat over Prime Minister Sanae Takaichi's comments on Taiwan.

Takaichi, seen as a China hawk, suggested this month that close US ally Japan could intervene militarily in any attack on the self-ruled island, which Beijing claims.

Asia's two top economies are closely entwined, with China the biggest source of tourists going to Japan -- almost 7.5 million in the first nine months of 2025.

Drawn by a weak yen making shopping cheaper, they splashed out 590 billion yen ($3.8 billion) in the third quarter -- 28 percent of all spending by foreign tourists, transport ministry data shows.

Japan was also the fourth-most popular destination for Chinese tourists last year, helping th

See Full Page