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Major Asia Markets Fall More Than 1%

Major Asia Markets Fall More Than 1%
Shares in Asia-Pacific fell in Monday trade.

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

The Nikkei 225 in Japan dropped 1.46% in afternoon trade while the Topix index shed 1.39%. South Korea’s Kospi fell 0.91%.

In Hong Kong, the Hang Seng index slipped 1.59% by the afternoon. Mainland Chinese stocks also declined, with the Shanghai composite down about 0.3% while the Shenzhen component dipped fractionally.

Australian stocks also declined as the S&P/ASX 200 dropped 0.85%.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.19%.

Oil prices fall after OPEC+ deal

In the afternoon of Asia trading hours on Monday, international benchmark Brent crude futures slipped 1.06% to $72.81 per barrel. U.S. crude futures also declined 1.09% to $71.03 per barrel.

Shares of oil firms in Asia-Pacific also declined in Monday trade, with Santos in Australia falling 2.56%. Japan’s Index dropped 2.1%, while Japan Petroleum Exploration plunged 2.56%. CNOOC shares in Hong Kong slipped 1.35%.

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 92.726 following a recent climb from below 92.4.

The Japanese yen traded at 109.94 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.

About the author

Smriti Rajan

Smriti Rajan comes from a political science and literature background, having an immense passion for writing across varied topics. She has written several articles and blogs for diverse audiences worldwide. She has produced several research publications, policy frameworks, and opinion pieces for think tanks, government institutions and corporates. Alongside this, she writes for a large Fortune 500 clientele and is a key contributing writer for Wikistrat on their EMEA desk. Currently, she resides in India.