the code in the accepted answer actually reads from the stream completely for decoding. Below is the right way, converting one stream to another, where the data can be read chunk by chunk.
# Initialize a read buffer
input = io.BytesIO(
b'Inital value for read buffer with unicode characters ' +
'ÁÇÊ'.encode('utf-8')
)
wrapper = io.TextIOWrapper(input, encoding='utf-8')
# Read from the buffer
print(wrapper.read())