Should tags with non-ascii chars work?

If I have tags that contain chars like å,ä,ö should they work, i.e. if I click on the tags should I see a list with posts?

The reason I ask is that when I click on an "ascii tag", I get a list of posts with this tag. But if I click on a tag like "väder" then no entries are listed - not even the post with the tag I clicked on.

Is this a bug, or am I doing something wrong?