City of Mist - Japanese Mythology?

[sox7d]

This is kind of a stretch, but I noticed that the City of Mist is... well called the city of mist, has japanese architecture and half the mobs have something to do with fog, haze, etc... Then I was playing a game of Legend of the Five Rings (eastern fantasy game) in which there is also a city full of undead that is completely shrouded in dense mist/fog.

Would anyone happen to know if there is anything like this in actual japanese/chinese mythology which both games were taking it from?