China and Japan island row escalates

$345bn of trade is under threat between Japan and China. Several major Japanese companies have suspended operations in China after attacks on shops and car dealerships. Shares fell in Tokyo on Tuesday. The Japanese government has asked Beijing to do more to protect Japanese businesses.

Tokyo had asked Beijing via diplomatic channels to take necessary steps to protect Japanese interests and prevent further damage to Japanese companies in China.

Nissan Motors shares dropped 5% in Tokyo, Uniqlo-owner Fast Retailing fell 7% and Honda Motors was down by 2.5%.

The protests in China is linked to controversial islands that both China and Japan claim known as Senkaku in Japan and Diaoyu in China. China claims sovereignty over these islands, which Japan has recently purchased.