Asian markets fell in early trading Monday, after the world’s major oil producers agreed to a historic production cut. Japan’s NI
Asian markets fell in early trading Monday, after the world’s major oil producers agreed to a historic production cut.
declined 0.8% and South Korea’s Kospi
fell 0.7%. The Shanghai Composite
dipped 0.2% while the smaller-cap Shenzhen Composite
slipped 0.4%. Benchmark indexes in Taiwan
were about flat, while stocks gained slightly in Indonesia
. Markets in Hong Kong, Australia, New Zealand and Europe are closed for the Easter Monday holiday.
On Sunday, OPEC, Russia and other oil-producing nations agreed to an unprecedented production cut of nearly 10 million barrels a month, in a bid to strengthen prices amid a monthslong price war between Saudi Arabia and Russia and a global drop in demand due to the coronavirus pandemic.
But some analysts worried that the production cut would not be enough to boost prices.
“With a demand shock estimated at between 15 to 30 million barrels of oil a day, depending on who you talk to, it is clear that the OPEC+ agreement contains more hope than reality,” wrote Jeffrey Halley, senior Asia Pacific market analyst at Oanda, in a note. “The entire construction is underwhelming, to say the least.”