Tokyo stocks weaken on tankan result

TOKYO, Japan -- Tokyo shares opened softer Monday as weakness in the Bank of Japan's key "tankan" business survey rekindled concerns over the country's foundering economy.

The benchmark Nikkei 225 average lost almost 200 points or 1.5 percent to 12,777.88, while the broader capital-weighted TOPIX lost 14.35 points or 1.1 percent to 1,286.63.

Elsewhere in the region, Australia stocks slipped back from last Friday's record close, with the benchmark S&P/ASX200 losing 36 points in early trade to be at 3454.0.

In Seoul, the Kospi was up 1.36 points to 596.49, while Taiwan lost about 27 points to 4857.

The Hong Kong stock market is closed Monday for a public holiday.

In Japan, tech stocks such as Sony were down as part of a wider market easing. Bank shares too were mostly down, with Sumitomo Mitsui Banking losing 2.33 percent to 1,006 yen.

Investors shied away from the sector amid worries that deteriorating business sentiment will hurt their business, analysts said.

Diffusion index dives

The quarterly "tankan" short-term corporate survey produced a headline figure of minus 16 for the sentiment diffusion index reading for large manufacturers.

This was down from minus five in March, when the index worsened for the first time in nine quarters.

It was in line with the minus 16 forecast in a survey of 16 economists conducted last week by Reuters.

"The market has somewhat factored in the results deteriorating significantly," said Yutaka Miura, deputy manager of the equity information section at Shinko Securities.

But he said worries stayed over the economy and corporate earnings, putting a weight on the market.

Reuters contributed to this report.