I've had to set this up on three computers in the last couple of weeks and I forgot both how to do it and how to google for it effectively every single time, so here it goes as a memo to future-self for next time.
If your git status shows gibberish like this for non-ASCII file names:
$ git status On branch master [...] modified: "\350\265\244\343\201\204\346\214\207"
The solution is to disable quotes in paths:
$ git config --global core.quotePath false
$ git status On branch master [...] modified: 赤い指