Tourism stocks plunge as Japan-China tensions soar

Japan has dispatched a senior envoy to try to ease tensions with China as stock markets in both countries fell after Beijing issued a travel warning to its citizens over the weekend.

The share sell-off, which ripped through stocks in Japan’s retail and transport sectors, was fuelled by a warning from a leading economic think-tank that a sharp drop in Chinese visitors could reduce overall tourism spending by an annual ¥2.2tn ($14bn).