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

The Nikkei 225 in Japan dropped 1.41% in morning trade while the Topix index shed 1.44%. South Korea’s Kospi fell 0.96%.

In Hong Kong, the Hang Seng index plunged 1.61%. Mainland Chinese stocks also declined, with the Shanghai composite down about 0.6% while the Shenzhen component dipped 0.216%.

Australian stocks also declined as the S&P/ASX 200 dropped 1.22%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.21% lower.

In the morning of Asia trading hours on Monday, international benchmark Brent crude futures slipped 1.22% to $72.69 per barrel. U.S. crude futures also declined 1.16% to $70.98 per barrel.

Shares of oil firms in Asia-Pacific also declined in Monday morning trade, with Santos in Australia falling 2.56%. Japan’s Inpex dropped 2.84%, while Japan Petroleum Exploration plunged 3.19%. CNOOC shares in Hong Kong slipped 1.85%.

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 92.70 following a recent climb from below 92.4.

The Japanese yen traded at 109.89 per dollar, stronger than levels above 110.4 seen against the greenback last week. The Australian dollar changed hands at $0.738, 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.