Japan anime, entertainment stocks drop on report of China blocking film releases
Investing.com-- Major Japanese animation and entertainment stocks fell on Tuesday on reports that Chinese distributors had suspended the screening of some Japanese films, amid a growing diplomatic row between the two countries.
Chinese media reports suggested that the screenings of at least two Japanese films were suspended, in what Chinese state broadcaster CCTV called a “prudent decision.” The move was the latest in a growing diplomatic rift between Tokyo and Beijing, over comments made by Japanese Prime Minister Sanae Takaichi on military involvement in Taiwan.
The movies that were reportedly blocked from screening were “Crayon Shin-chan the Movie” and “Cells at Work.”
Shares of Toho Co., Ltd. (TYO:9602), which is distributing the Shin-chan movie, fell more than 4% on Tuesday.
Other animation and film stocks also declined. Toei Co Ltd (TYO:9605) and Toei Animation fell 5.6% and 4.3%, respectively, while Shochiku Co Ltd (TYO:9601) and IG Port Inc (TYO:3791) lost over 2% each.
Broader Japanese shares also tumbled amid growing concerns over the country’s fiscal health. The Nikkei 225 index slid more than 2%.
Losses in entertainment stocks come following a Monday decline in tourism-related shares, after China also warned its citizens against travel to Japan.
PM Takaichi sparked a diplomatic rift with China after she earlier this month suggested that any Chinese moves against Taiwan could draw in military action from Japan. Beijing harshly rebuked her comments, with several Chinese diplomats and state media outlets speaking against Takaichi.
The Japanese PM has so far declined to retract her statements. Japan was also seen sending envoys to China this week to help temper tensions.
Taiwan is a particularly contentious topic for China, given that Beijing claims the island as part of its own territory. Taiwan is also located close to Japan’s western-most islands, as well as key shipping routes.
