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Major Asia Markets Fall More Than 1%; Oil Prices Slip After OPEC and Allies Reach Deal

Toru Hanai | Bloomberg via Getty Images
  • Shares in Asia-Pacific fell on Monday.
  • Investors watched for movements in oil after OPEC and its allies reached a deal on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022.
  • In the afternoon of Asia trading hours on Monday, international benchmark Brent crude futures slipped 1.35% to $72.60 per barrel. U.S. crude futures also declined 1.42% to $70.79 per barrel.

SINGAPORE — Shares in Asia-Pacific slipped on Monday, as oil prices fell after OPEC and its allies reached a deal.

In Hong Kong, the Hang Seng index led losses among the region's major markets, closing 1.84% lower at 27,489.78.

The Nikkei 225 in Japan dropped 1.25% to close at 27,652.74 while the Topix index shed 1.3% to end the trading day at 1,907.13. South Korea's Kospi closed 1% lower at 3,244.04.

Mainland Chinese stocks closed mixed, with the Shanghai composite little changed at 3,539.12 while the Shenzhen component rose 0.138% to 14,992.90.

Australian stocks also declined as the S&P/ASX 200 dropped 0.85% to close at 7,286.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.39%.

Oil prices fall after OPEC+ deal

In the afternoon of Asia trading hours on Monday, international benchmark Brent crude futures slipped 2.13% to $72.02 per barrel. U.S. crude futures also declined 2.09% to $70.31 per barrel.

Shares of oil firms in Asia-Pacific also declined on Monday, with Santos in Australia falling 2.71%. Japan's Inpex dropped 1.98%, while Japan Petroleum Exploration plunged 2.35%. CNOOC shares in Hong Kong slipped 1.72%.

OPEC and its allies reached a deal on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022. Coordinated increases in oil supply from the group — collectively known as OPEC+ — will start in August, OPEC said in a statement.

The development came as Brent surged more than 40% so far in 2021, with demand for crude rising as the global economy recovers from the pandemic.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.902 following a recent climb from below 92.4.

The Japanese yen traded at 109.86 per dollar, stronger than levels above 110.4 seen against the greenback last week. The Australian dollar changed hands at $0.737 lower than levels above $0.748 seen last week.

Clarification: This article was updated to reflect that OPEC and its allies reached a deal on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022.

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