Japan has warned its citizens in China to step up safety precautions and avoid crowded places amid a deepening dispute between Asia's two largest economies over Japanese Prime Minister Sanae Takaichi's comments on Taiwan.

Rising yields, a falling yen and a faltering stock market are an unusual and unsettling combination for Japan and reflect wobbly confidence and longer-run structural shifts. A striking feature has been how the yen has departed from a usually tight relationship with U.S.-Japan interest rate differentials.