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Tourism shares drag down Nikkei amid China-Japan spat over Taiwan
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Tourism shares drag down Nikkei amid China-Japan spat over Taiwan
Nov 16, 2025 7:22 PM

TOKYO, Nov 17 (Reuters) - Japan's Nikkei share average

fell in choppy trade on Monday, as tourism-related stocks

tumbled amid an escalating diplomatic spat with China over

Taiwan.

The Nikkei was down 0.5% at 50,135.31, as of 0218

GMT, after rising as much as 0.4% earlier in the session. The

broader Topix fell 0.67% to 3,337.38.

China on Friday cautioned its citizens against visiting

Japan in the spat sparked by comments from Japanese Prime

Minister Sanae Takaichi.

Takaichi said this month that a Chinese attack on Taiwan

could amount to a "survival-threatening situation", potentially

triggering a military response from Tokyo.

Shares of department stores fell, with Isetan Mitsukoshi

Holdings ( IMHDF ) down 10.87%. Takashimaya ( TKSHF ) lost 6.52%,

while cosmetics maker Shiseido ( SSDOF ) fell 9.5%. Uniqlo-brand

owner Fast Retailing ( FRCOF ) lost 5.5% 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 scooped up chip and artificial intelligence-related

shares on dip.

SoftBank Group gained 3% to become the biggest

support for the Nikkei. Fujikura ( FKURF ), a maker of fibre

optic used at AI data centres, rose 2%, while Mitsui Kinzoku ( XZJCF )

, a maker of data centre materials, jumped 7%.

Sumitomo Mitsui Financial Group ( SMFG ) rose 3.8% after the

country's second-largest banking group posted a 57% rise in

July-September quarter net profit on Friday.

Mitsubishi UFJ Financial Group ( MUFG ) and Mizuho Financial

Group ( MFG ) slipped 1.5% and 0.32%, respectively, even as

they posted higher quarterly net profits.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)

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