Cannot read byte streams encoded in UTF8

An InputStreamReader using the UTF8 encoding produces an erroneous character
stream, as demonstrated by the following program.

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import java.io.*;

public class UTF8 {

    public static void main(String[] args) {
try {
Reader in = new InputStreamReader(System.in, "UTF8");
char buf[] = new char[10];
int n;
while ((n = in.read(buf)) >= 0) {
System.out.println(new String(buf, 0, n));
}
} catch (Exception x) {
x.printStackTrace();
}
    }

}

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% java UTF8 <UTF8.java
 
import ja
tic void m
new InputS
[] = new c
(buf)) >=
n));
            
race();
        }
%

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The above command should cause the entire program to be printed.