Japanese characters show up as ? in browser

I am using Xalan to transform XML into HTML.  The Japanese characters,
however, are shown as question marks in the browser.

Here is a snippet of XML:

	<Id>&#x65E5;&#x672C;&#x8A9E;</Id>
	<Description>&#x82B1;&#x5B50;</Description>

Here is the corresponding snippet of XSL that transforms this XML:

	<option>
		<xsl:attribute name="value"><xsl:value-of
select="Id"/></xsl:attribute>
		<xsl:value-of select="Description"/>
	</option>

Here is the HTML source I am getting from the browser:

	<option value="???">??</option>

I am using encoding="UTF-8" in the xsl:output element.  Any ideas of
what may be going wrong?  I have tried both FireFox and IE.

Regards,
Dave