The JSON contains UTF-8 encoded text, but you need to tell the browser your page uses UTF-8 encoding. Based on your output, it appears that the unicode text is being interpreted as ASCII text.
You can add the following to your PHP code to set the content type via HTTP headers:
header('Content-Type: text/html; charset=UTF-8');
And/Or, you can add a meta tag within your <head>
tags to specify UTF-8:
<!-- html4/xhtml -->
<meta http-equiv="Content-Type" content="text/html; charset=utf-8">
<!-- HTML5 -->
<meta charset="utf-8">