Japanese tourism and retail shares fell sharply on Monday after China warned its citizens to avoid travelling to the East Asian country in a spat over comments by Prime Minister Sanae Takaichi about Taiwan.

China and Japan's long-testy ties have spiralled further this month after Takaichi suggested that Tokyo could intervene militarily in any emergency in the self-ruled island.

Asia's two biggest economies are closely entwined, with China the biggest source of tourists to Japan, with almost 7.5 million in the first nine months of 2025, according to the Japan national tourism bureau.

In the third quarter, they spent 590 billion yen ($3.8 billion), accounting for about 28 percent of all spending by international tourists, transport ministry data shows.

Shares in cosmetics form Shiseido d

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