** Shares of Chinese software maker Linkage 688588.SS, which derives most of its sales from Japan, fall 4% to their lowest level since July 24

** Geopolitical tensions between China and Japan escalated over the weekend as Beijing warned Tokyo of a "crushing" defeat and asked Chinese citizens to shun visits

** The row erupted after Japan Prime Minister Sanae Takaichi told Japanese lawmakers that a Chinese attack on Taiwan could threaten Japan's survival and potentially trigger a military response, something officials had long avoided airing in public for fear of provoking Beijing, which claims the self-ruled island

** Airline stocks also face an impact as Chinese tourists cancelled their trips

** Mainland-listed shares of Air China 601111.SS and China Eastern 600115.SS down 2% each in early trade before reversing some losses

** The CSI Defense Index .CSI399973 up 1.8%

(Reporting by Shanghai Newsroom)

((li.gu@tr.com))