FX.co ★ Japanese Shares Slip Amid China Tensions

The Nikkei 225 Index experienced a slight decline of 0.1%, closing at 50,324, while the broader Topix Index decreased by 0.37% on Monday. The drop continued from the previous session, driven largely by declines in tourism and retail stocks due to escalating geopolitical tensions with China. In response to these tensions, Beijing advised Japan against intervening in matters concerning Taiwan and issued a warning to Chinese citizens regarding travel to Japan. Concurrently, a Japanese diplomat is scheduled to visit China in efforts to alleviate the situation. As a result, shares of travel companies such as Japan Airlines and ANA Holdings saw notable declines, falling 3.8% and 3.1%, respectively. Other consumer-oriented firms, including Fast Retailing, Isetan Mitsukoshi, Oriental Land, Ryohin Keikaku, and Sony Group, also experienced setbacks, with share prices dropping between 3.2% and 11.3%. Despite these challenges, Japan's economy contracted by just 0.4% quarter-on-quarter for the July-September period, outperforming market expectations of a 0.6% decline, even though it reversed the previous quarter's 0.6% growth.