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 slipped 1.67%, as of its final hour of trading. 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 1.32%.
Shares of oil firms in Asia-Pacific also declined on Monday trade, 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 1.85%, as of their final hour of trading.
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.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.822 following a recent climb from below 92.4.
The Japanese yen traded at 109.97 per dollar, stronger than levels above 110.4 seen against the greenback last week. The Australian dollar changed hands at $0.7363, 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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