In the web browser Lynx I have managed to make non-ASCII character display correctly with the setting
CHARACTER_SET:UNICODE (UTF-8)
in /etc/lynx-cur/lynx.cfg. I also tried ASSUME_CHARSET, it makes no difference. Typing non-ASCII characters in input fields, however, does not work properly. For example, when I copy 狐 into the form field it displays correctly. Then when I press space, however, the insertion point is moved to the beginning of the line. If I do this with Äpfel, it also displays correctly when I paste it. Upon writing it, the Ä displays correctly but when I type in the remaining letters the insertion point is first moved to the far left and then no characters are displayed.
What setting do I need? My locale is all UTF-8. I use Lynx 2.8.9dev.1 on Debian 8.7. All other applications, Emacs included, work flawlessly with non-ASCII characters.
ASSUME_CHARSETrather thanCHARACTER_SET. Tested with Japanese keyboard entry to be sure the entered characters don't also appear in ISO-8859-1