Group 1 - The three major Chinese airlines, Air China, China Southern Airlines, and China Eastern Airlines, announced an extension of the free ticket refund and change policy for flights to and from Japan, applicable for tickets purchased before January 26 for travel dates from March 29 to October 24 [1] - The airlines have previously issued special handling plans for tickets related to Japan routes, with the initial free refund and change policy set to expire on March 28 [1] Group 2 - The Chinese Ministry of Foreign Affairs issued a warning advising citizens to avoid traveling to Japan during the upcoming Spring Festival due to rising safety concerns, including an increase in criminal cases against Chinese nationals and recent earthquakes [2] - As of January 26, 2026, there have been 49 flight routes canceled entirely, marking an increase from January, with a cancellation rate of 47.2% for flights from mainland China to Japan in January 2026, up by 7.8 percentage points from December 2025 [2]

Market Overview - On November 17, the Nikkei 225 index opened with a significant drop, falling over 1% and briefly dipping below 50,000 points before narrowing its losses [1] - As of 9:31 AM, the index was at 50,165.30, down 211.23 points or 0.42% from the previous close [2] Stock Performance - Japanese tourism-related stocks experienced substantial declines, with Shiseido's stock price dropping nearly 10% [2] - Japan Airlines fell over 5%, while other consumer and retail stocks such as Sanrio, Asics, and Fast Retailing saw declines of 7.8%, 6.6%, and 4.83% respectively [2][3] - Isetan Mitsukoshi Holdings and Muji both saw their stock prices drop by 12%, marking the largest decline since August 2024 [2] Economic Indicators - The Japanese Cabinet Office reported a 1.8% year-on-year decline in real GDP for Q3, marking the first negative growth in six quarters [5] - The real GDP decreased by 0.4% compared to the previous quarter [5] Impact of Travel Advisories - Following safety concerns and travel advisories issued by the Chinese government, there is a notable decrease in travel to Japan, which is expected to significantly impact the Japanese tourism industry [5] - Chinese tourists account for approximately 25% of all foreign visitors to Japan, with nearly 7.5 million mainland Chinese tourists visiting Japan in the first nine months of the year [5]