Japan's economy suffers as China warns against Japan travel

Retail and tourism-related Japanese stocks plunged on Monday after China's Ministry of Culture and Tourism advised its citizens to avoid traveling to Japan.

According to Bloomberg and Reuters, shares of Shiseido, a brand highly popular among Chinese tourists, fell as much as 11.4 percent, its biggest drop since April this year. Pan Pacific International Holdings, operator of Don Quijote stores, slid 9.7 percent, its biggest decline since August last year. 

The stock price of Japanese department store operator Isetan Mitsukoshi plunged 10.7 percent and is poised for its biggest drop in more than a year. Meanwhile, department store operators Takashimaya and J Front Retailing lost over 6 percent.

The shares of Oriental Land, the operator of Tokyo Disneyland, dropped by 5.1 percent, and Uniqlo's parent company, Fast Retailing, has declined by 6.9 percent, its biggest slide since mid-July. Japan Airlines saw a 3.9 percent drop.

The releases of some Japanese films were also postponed on Monday, including "Crayon Shin-chan the Movie: Super Hot! The Spicy Kasukabe Dancers" and "Cells at Work!," which were originally scheduled for release in China in the near future.

The market reaction followed controversial remarks by Japanese Prime Minister Sanae Takaichi on November 7. At a Diet meeting, Takaichi claimed that the Japanese Self-Defense Force could exercise the right of collective self-defense if the Chinese mainland "uses military forces against Taiwan." Despite China's serious démarches and protests, she refused to retract her remarks that imply the possibility of armed intervention in the Taiwan Strait.