Asian shares mostly lower after pessimistic 'tankan' survey

TOKYO (AP) — Asian benchmarks were mostly lower on Friday, echoing a decline on Wall Street, after a quarterly report by Japan’s central bank rekindled worries about the world’s third largest economy.

Shares fell in Tokyo, Seoul, Sydney and Shanghai. Markets were closed in Hong Kong for a holiday.

Recent data suggest global growth is slowing as countries grapple with renewed waves of coronavirus outbreaks, soaring prices and the war in Ukraine.

In the Bank of Japan “tankan” survey, the headline index for large manufacturers was 9, down from 14 in the previous quarter and the second straight quarter of declines. The tankan measures corporate sentiment by subtracting the number of companies saying business conditions are negative from those responding they are positive.

The numbers for non-manufacturing indicators were better, but worries are growing because of pressures from a weakening Japanese yen.

The tankan results might spur criticism over the Bank of Japan's ultra-loose monetary policy, which is a factor behind the weaker yen, said Stephen Innes, managing partner at SPI Asset Management.

“The Bank may wait until the Q3 survey is released before stepping away from its ultra-dovish setting,” he said in a report.

In a bit of positive news, a survey by a Chinese business magazine, Caixin, found China’s factory activity expanded in June at its strongest rate in 13 months following an easing of anti-virus restrictions that shut down Shanghai and other industrial centers..

A monthly purchasing managers’ index issued by Caixin rose to 51.7 from 48.1 in May on a 100-point scale on which numbers above 50 show activity increasing. New orders rose while employment declined for a third month.

Japan's benchmark Nikkei 225 dropped 1.7% to finish at 25,935.62. Australia's...