SINGAPORE – Asia Pacific stocks plummeted on Monday as oil prices fell after OPEC and its allies reached an agreement.
Japan’s Nikkei 225 lost 1.25% to close at 27,652.74 while the Topix index lost 1.3% to end the day at 1,907.13. South Korea’s Kospi closed 1% lower at 3,244.04.
In Hong Kong, the Hang Seng index lost 1.67% on its last hour of trading. Mainland stocks closed mixed, with the Shanghai composite moving little at 3,539.12 while the Shenzhen component rose 0.138% to 14,992.90.
Australian stocks also fell as the S & P / ASX 200 fell 0.85% to close at 7,286.
MSCI’s broadest index for Asia Pacific stocks outside of Japan fell 1.32%.
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Oil prices fall after the OPEC + deal
In the afternoon of Monday’s Asian trading hours, the international benchmark Brent crude oil futures slipped 1.35% to $ 72.60 a barrel. US crude oil futures also fell 1.42% to $ 70.79 a barrel.
Asia Pacific oil company stocks also fell Monday, with Santos falling 2.71% in Australia. Japan’s Inpex lost 1.98% while Japan Petroleum Exploration slumped 2.35%. The Hong Kong CNOOC stock lost 1.85% on its last hour of trading.
OPEC and its allies reached an agreement on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022. A coordinated increase in the group’s oil supply – collectively known as OPEC + – will begin in August, OPEC said in a statement.
The trend came when Brent rose more than 40% so far in 2021, with demand for crude oil rising as the global economy recovers from the pandemic.
Currencies
The US dollar index, which tracks the greenback versus a basket of its competitors, hit 92.822 after rising below 92.4 recently.
The Japanese yen was trading at 109.97 the dollar, stronger than the 110.4 levels seen against the greenback last week. The Australian dollar changed hands at $ 0.7363, below the over $ 0.748 level reached last week.
Clarification: This article has been updated to reflect that OPEC and its allies reached an agreement on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022.
