Core Viewpoint - The Japanese stock market experienced a significant decline due to travel warnings and study alerts issued by China, impacting sectors such as tourism, retail, and aviation [1][3]. Impact on Companies - Companies heavily reliant on the Chinese market faced the most severe losses, with major department store operator Isetan Mitsukoshi's stock plummeting over 12%, while J Front Retailing and Takashimaya saw declines exceeding 6% [3]. - Shiseido, a beauty giant, experienced an 11% drop, marking its largest single-day decline since April, and Fast Retailing, the parent company of Uniqlo, fell by 6.9%, its worst performance since mid-July [3]. - The operator of Tokyo Disneyland, Oriental Land, saw its stock drop by over 5%, and Pacific Holdings, a retail store, experienced a significant decline of 8.9%, the largest drop since August 2024 [3]. Economic Significance of Chinese Market - The Chinese market plays a crucial role in Japan's economy, with 5.3 million visitors from mainland China in the first three quarters of 2025, accounting for 24% of all foreign tourists in Japan [4]. - Chinese tourists contributed approximately 1.8 trillion yen (about 82.7 billion yuan) to Japan's economy, representing over 30% of total foreign tourist spending, with an average spending of 16,000 yuan per person, significantly higher than tourists from other countries [4]. - Chinese students make up 36.7% of Japan's international student population, totaling 123,000, making China the largest source of international students in Japan [4]. Potential Economic Impact - A significant reduction in Chinese tourists could lead to a 0.36% decrease in Japan's GDP, with potential economic losses reaching 2.2 trillion yen (approximately 101.2 billion yuan) [4]. - As Japan's largest trading partner and second-largest export destination, the cooling of bilateral exchanges may further affect trade cooperation expectations, with total trade between China and Japan reaching $308.3 billion in 2024 [4]. - Recent data indicates a contraction in Japan-China flight routes, with the number of weekly flights dropping by 14.5% from November 3 to 9, 2023, and recovery rates remaining below 83% of the levels seen in 2019 [4].