Japan's Nikkei 225 falls 1% as Asia-Pacific stocks slip; OPEC and allies reach deal

  • Shares in Asia-Pacific fell in Monday morning trade.
  • 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.

SINGAPORE — Shares in Asia-Pacific slipped in Monday morning trade, as markets watched oil prices after OPEC and its allies reached a deal.

The Nikkei 225 in Japan dropped 1.1% in early trade while the Topix index shed 0.86%. South Korea's Kospi fell 0.73%.

Australian stocks also declined as the S&P/ASX 200 edged 0.5% lower.

MSCI's broadest index of Asia-Pacific shares outside Japan traded 0.27% lower.

Stock picks and investing trends from CNBC Pro:

There's a 'better hedge' against rising inflation — and it's not gold, says fund manager

Morgan Stanley sees nearly 50% upside in this satellite stock

Jeffrey Gundlach says stocks can stay at 'nosebleed levels' as long as the stimulus continues

OPEC and allies reach deal

Investors watched for movements in oil markets on Monday. 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 international benchmark Brent crude futures surged more than 40% so far in 2021, with demand for crude rising as the global economy recovers from the pandemic.

In the morning of Asia trading hours, Brent slipped 0.84% to $72.97 per barrel. U.S. crude futures also declined 0.78% to $71.25 per barrel.

Shares of oil firms in Asia-Pacific also declined in Monday morning trade, with Beach Energy in Australia falling 0.58%. Japan's Inpex dropped 2.22%, while Japan Petroleum Exploration plunged 3.14%.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.656 following a recent climb from below 92.4.

The Japanese yen traded at 109.91 per dollar, stronger than levels above 110.4 seen against the greenback last week. The Australian dollar changed hands at $0.7387, lower than levels above $0.748 last week.

Correction: 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.

Source: Read Full Article