Asian shares fall in thin trading after rout on Wall St

TOKYO (AP) — Asian shares slipped Monday lower following a sell-off last week on Wall Street as investors fretted over the impact on regional economies from inflation, the war in Ukraine and COVID-19 lockdowns in China.

Benchmarks declined in Japan, South Korea and Australia. Trading was closed for holidays in China and many other regional markets.

A report showing pandemic lockdowns have hurt factory activity in China, a main regional driver of growth, was a fresh source of concern.

The monthly purchasing managers’ index, released by China’s National Bureau of Statistics, fell to 47.4 in April, down from 49.5 in March on a 100-point scale. Numbers below 50 show activity contracting.

The COVID-19 outbreaks have impacted China’s factory activities and market demand, said the bureau’s statistician Zhao Qinghe.

Some enterprises have reduced or stopped production, with disruptions in logistics as well as the supply or raw materials and components.

Residents of Shanghai, China’s most populous city, spent weeks in April under lockdown. The capital, Beijing, began mass testing millions of residents this week.

In Japan, a series of national holidays this week known as Golden Week is allowing people to take a vacation, even in the “workaholic” culture at companies. But the crowds gathering in resorts are adding to concerns coronavirus cases might pick up again, leading to a resumption of restrictions on restaurant opening hours and other business activities.

Japan's benchmark Nikkei 225 declined 0.6% in morning trading to 26,685.18. Australia's S&P/ASX 200 dropped 1.7% to 7,306.50. South Korea's Kospi shed 0.6% to 2,678.05. Trading was closed in China for Labor Day, a national holiday, and in other regional markets.

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