To use Unicode in the Windows console for Python 2.7 and 3.x (prior to 3.6), install and enable win_unicode_console. This uses the wide-character functions ReadConsoleW and WriteConsoleW, just like other Unicode-aware console programs such as cmd.exe and powershell.exe. For Python 3.6, a new io._WindowsConsoleIO raw I/O class has been added. It reads and writes UTF-8 encoded text (for cross-platform compatibility with Unix — “get a byte” — programs), but internally it uses the wide-character API by transcoding to and from UTF-16LE.
The problem you’re experiencing with non-ASCII input is reproducible in the console for all Windows versions up to and including Windows 10. The console host process, i.e. conhost.exe, wasn’t designed for UTF-8 (codepage 65001) and hasn’t been updated to support it consistently. In particular, non-ASCII input causes an empty read. This in turn causes Python’s REPL to exit and built-in input to raise EOFError.
The problem is that conhost encodes its UTF-16 input buffer assuming a single-byte codepage, such as the OEM and ANSI codepages in Western locales (e.g. 437, 850, 1252). UTF-8 is a multibyte encoding in which non-ASCII characters are encoded as 2 to 4 bytes. To handle UTF-8 it would need to encode in multiple iterations of M / 4 characters, where M is the remaining bytes available from the N-byte buffer. Instead it assumes a request to read N bytes is a request to read N characters. Then if the input has one or more non-ASCII characters, the internal WideCharToMultiByte call fails due to an undersized buffer, and the console returns a ‘successful’ read of 0 bytes.
You may not observe exactly this problem in Python 3.5 if the pyreadline module is installed. Python 3.5 automatically tries to import readline. In the case of pyreadline, input is read via the wide-character function ReadConsoleInputW. This is a low-level function to read console input records. In principle it should work, but in practice entering print('รค') gets read by the REPL as print(''). For a non-ASCII character, ReadConsoleInputW returns a sequence of Alt+Numpad KEY_EVENT records. The sequence is a lossy OEM encoding, which can be ignored except for the last record, which has the input character in the UnicodeChar field. Apparently pyreadline ignores the entire sequence.
Prior to Windows 8, output using codepage 65001 is also broken. It prints a trail of garbage text in proportion to the number of non-ASCII characters. In this case the problem is that WriteFile and WriteConsoleA incorrectly return the number of UTF-16 codes written to the screen buffer instead of the number of UTF-8 bytes. This confuses Python’s buffered writer, leading to repeated writes of what it thinks are the remaining unwritten bytes. This problem was fixed in Windows 8 as part of rewriting the internal console API to use the ConDrv device instead of an LPC port. Older versions of Windows can use ConEmu or ANSICON to work around this bug.