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.

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%.

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.