diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -1697,7 +1697,9 @@ def help_(ui, name=None, with_version=Fa
                 commands = cmds[f].replace("|",", ")
                 ui.write(" %s:\n      %s\n"%(commands, h[f]))
             else:
-                ui.write(' %-*s   %s\n' % (m, f, util.wrap(h[f], m + 4)))
+                ui.write('%s\n' % (util.wrap(h[f],
+                                             initindent=' %-*s   ' % (m, f),
+                                             hangindent=' ' * (m + 4))))
 
         if not ui.quiet:
             addglobalopts(True)
@@ -1824,8 +1826,11 @@ def help_(ui, name=None, with_version=Fa
         opts_len = max([len(line[0]) for line in opt_output if line[1]] or [0])
         for first, second in opt_output:
             if second:
-                second = util.wrap(second, opts_len + 3)
-                ui.write(" %-*s  %s\n" % (opts_len, first, second))
+                initindent = ' %-*s  ' % (opts_len, first)
+                hangindent = ' ' * (opts_len + 3)
+                ui.write('%s\n' % (util.wrap(second,
+                                             initindent=initindent,
+                                             hangindent=hangindent)))
             else:
                 ui.write("%s\n" % first)
 
diff --git a/mercurial/encoding.py b/mercurial/encoding.py
--- a/mercurial/encoding.py
+++ b/mercurial/encoding.py
@@ -72,6 +72,6 @@ def colwidth(s):
     d = s.decode(encoding, 'replace')
     if hasattr(unicodedata, 'east_asian_width'):
         w = unicodedata.east_asian_width
-        return sum([w(c) in 'WF' and 2 or 1 for c in d])
+        return sum([w(c) in 'WFA' and 2 or 1 for c in d])
     return len(d)
 
diff --git a/mercurial/minirst.py b/mercurial/minirst.py
--- a/mercurial/minirst.py
+++ b/mercurial/minirst.py
@@ -35,8 +35,8 @@ It only supports a small subset of reStr
 - inline literals (no other inline markup is not recognized)
 """
 
-import re, sys, textwrap
-
+import re, sys
+import util
 
 def findblocks(text):
     """Find continuous blocks of lines in text.
@@ -304,9 +304,9 @@ def formatblock(block, width):
         hang = len(block['lines'][-1]) - len(block['lines'][-1].lstrip())
         defindent = indent + hang * ' '
         text = ' '.join(map(str.strip, block['lines'][1:]))
-        return "%s\n%s" % (term, textwrap.fill(text, width=width,
-                                               initial_indent=defindent,
-                                               subsequent_indent=defindent))
+        return '%s\n%s' % (term, util.wrap(text, width=width,
+                                           initindent=defindent,
+                                           hangindent=defindent))
     subindent = indent
     if block['type'] == 'bullet':
         if block['lines'][0].startswith('| '):
@@ -338,9 +338,9 @@ def formatblock(block, width):
         subindent = indent + (len(option) + len(arg)) * ' '
 
     text = ' '.join(map(str.strip, block['lines']))
-    return textwrap.fill(text, width=width,
-                         initial_indent=indent,
-                         subsequent_indent=subindent)
+    return util.wrap(text, width=width,
+                     initindent=indent,
+                     hangindent=subindent)
 
 
 def format(text, width, indent=0, keep=None):
diff --git a/mercurial/templatefilters.py b/mercurial/templatefilters.py
--- a/mercurial/templatefilters.py
+++ b/mercurial/templatefilters.py
@@ -5,7 +5,7 @@
 # This software may be used and distributed according to the terms of the
 # GNU General Public License version 2 or any later version.
 
-import cgi, re, os, time, urllib, textwrap
+import cgi, re, os, time, urllib
 import util, encoding
 
 def stringify(thing):
@@ -61,15 +61,17 @@ def fill(text, width):
         while True:
             m = para_re.search(text, start)
             if not m:
-                w = len(text)
-                while w > start and text[w - 1].isspace():
+                uctext = unicode(text[start:], encoding.encoding)
+                w = len(uctext)
+                while 0 < w and uctext[w - 1].isspace():
                     w -= 1
-                yield text[start:w], text[w:]
+                yield (uctext[:w].encode(encoding.encoding),
+                       uctext[w:].encode(encoding.encoding))
                 break
             yield text[start:m.start(0)], m.group(1)
             start = m.end(1)
 
-    return "".join([space_re.sub(' ', textwrap.fill(para, width)) + rest
+    return "".join([space_re.sub(' ', util.wrap(para, width=width)) + rest
                     for para, rest in findparas()])
 
 def firstline(text):
diff --git a/mercurial/util.py b/mercurial/util.py
--- a/mercurial/util.py
+++ b/mercurial/util.py
@@ -16,7 +16,7 @@ hide platform-specific details from the 
 from i18n import _
 import error, osutil, encoding
 import cStringIO, errno, re, shutil, sys, tempfile, traceback
-import os, stat, time, calendar, textwrap, signal
+import os, stat, time, calendar, textwrap, unicodedata, signal
 import imp
 
 # Python compatibility
@@ -1257,21 +1257,49 @@ def uirepr(s):
     # Avoid double backslash in Windows path repr()
     return repr(s).replace('\\\\', '\\')
 
-def wrap(line, hangindent, width=None):
+#### naming convention of below implementation follows 'textwrap' module
+
+class MBTextWrapper(textwrap.TextWrapper):
+    def __init__(self, **kwargs):
+        textwrap.TextWrapper.__init__(self, **kwargs)
+
+    def _cutdown(self, str, space_left):
+        l = 0
+        ucstr = unicode(str, encoding.encoding)
+        w = unicodedata.east_asian_width
+        for i in xrange(len(ucstr)):
+            l += w(ucstr[i]) in 'WFA' and 2 or 1
+            if space_left < l:
+                return (ucstr[:i].encode(encoding.encoding),
+                        ucstr[i:].encode(encoding.encoding))
+        return str, ''
+
+    # ----------------------------------------
+    # overriding of base class
+
+    def _handle_long_word(self, reversed_chunks, cur_line, cur_len, width):
+        space_left = max(width - cur_len, 1)
+
+        if self.break_long_words:
+            cut, res = self._cutdown(reversed_chunks[-1], space_left)
+            cur_line.append(cut)
+            reversed_chunks[-1] = res
+        elif not cur_line:
+            cur_line.append(reversed_chunks.pop())
+
+#### naming convention of above implementation follows 'textwrap' module
+
+def wrap(line, width=None, initindent='', hangindent=''):
     if width is None:
         width = termwidth() - 2
-    if width <= hangindent:
+    maxindent = max(len(hangindent), len(initindent))
+    if width <= maxindent:
         # adjust for weird terminal size
-        width = max(78, hangindent + 1)
-    padding = '\n' + ' ' * hangindent
-    # To avoid corrupting multi-byte characters in line, we must wrap
-    # a Unicode string instead of a bytestring.
-    try:
-        u = line.decode(encoding.encoding)
-        w = padding.join(textwrap.wrap(u, width=width - hangindent))
-        return w.encode(encoding.encoding)
-    except UnicodeDecodeError:
-        return padding.join(textwrap.wrap(line, width=width - hangindent))
+        width = max(78, maxindent + 1)
+    wrapper = MBTextWrapper(width=width,
+                            initial_indent=initindent,
+                            subsequent_indent=hangindent)
+    return wrapper.fill(line)
 
 def iterlines(iterator):
     for chunk in iterator:
diff --git a/tests/test-encoding.out b/tests/test-encoding.out
--- a/tests/test-encoding.out
+++ b/tests/test-encoding.out
@@ -121,18 +121,18 @@ tip                                5:db5
 ?                                  3:770b9b11621d
 % hg tags (latin-1)
 tip                                5:db5520b4645f
-é                                  3:770b9b11621d
+é                                 3:770b9b11621d
 % hg tags (utf-8)
 tip                                5:db5520b4645f
-é                                  3:770b9b11621d
+é                                 3:770b9b11621d
 % hg branches (ascii)
 ?                              5:db5520b4645f
 default                        4:9cff3c980b58 (inactive)
 % hg branches (latin-1)
-é                              5:db5520b4645f
+é                             5:db5520b4645f
 default                        4:9cff3c980b58 (inactive)
 % hg branches (utf-8)
-é                              5:db5520b4645f
+é                             5:db5520b4645f
 default                        4:9cff3c980b58 (inactive)
 % hg log (utf-8)
 changeset:   5:db5520b4645f