Perverse new work to transfix Japan, says locals (6)

I believe the answer is:

nippon

I'm a little stuck... Click here to teach me more about this clue!

'japan says locals' is the definition.
'nippon' can be an answer for 'japan' (I've seen this before). I'm not sure about the 'says locals' bit.

I don't understand how the rest of the clue works.

Can you help me to learn more?

(Other definitions for nippon that I've seen before include "Transliteration of "Japan"" , "Japanese name for Japan (6)" .)

I've seen this clue in the Sydney Morning Herald.

Want a hint initially instead of a full solution? Install my app