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Animorphs did it first
(lemmy.nz)
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It probably isn't an issue if you're doing things properly. Your hashing algorithm shouldn't care if the character is latin, Chinese, Arabic, or emoji. It's just a number at the end of the day.
It shouldn't, but you will get issues of how to convert to number.
I made a password protected zip on my Android phone with a few non-ASCII characters, and the password was not accepted on PC. I am 99% sure they botched the encoding, like using UTF-32 instead of UTF-8 or something
But you should normalize the unicode before hashing, otherwise a user having the single letter ä in their password, can't log in when the ä gets built out of a and ̈on their current device or the other way around.