Asian shares mixed on weak Japan manufacturing data

BANGKOK — Asian shares were mixed Friday after another day of gains on Wall Street amid a deluge of news about the economy, interest rates and corporate profits.

Tokyo, Shanghai and Hong Kong gained while Sydney and Seoul declined. U.S. futures edged lower while oil prices rose.

A preliminary reading on factory activity for Japan showed output and new orders contracting to their worst levels in months. Companies blamed shortages of raw materials and rising costs, but demand may be weakening as the country endures yet another wave of coronavirus outbreaks, economists said.

July’s purchasing manager indexes “suggest that the manufacturing sector is slowing as demand weakens, while the latest COVID-19 is starting to hit the service sector,” Marcel Thieliant of Capital Economics said in a commentary.

Japan reported its inflation rose at a slower pace in June, with food prices growing…