Asian share markets eased on Monday as caution took hold ahead of a crucial earnings season for the artificial intelligence sector, while the potential for increased supply weighed on oil prices and promised relief from inflationary pressures.While there were no new developments in the fractious US-Iran peace talks, ships are passing through the Strait of Hormuz with 160 vessels reported from Monday to Saturday last week.
OPEC+ also agreed a further increase in output targets by 188,000 barrels per day from August, on top of similar increases for June and July. As a result, Brent slipped 0.5 percent to near four-month lows at US$71.79 a barrel and US crude lost 0.3 percent to $68.47.
The cooling in energy costs, combined with a softer US payrolls report, led markets to scale back the risk of a Federal Reserve rate hike in the near term, with futures implying a 78 percent chance of a steady outcome at the July 29 meeting.
Minutes of the Fed's last meeting are due on Wednesday and should offer color on the hawkish turn by some board members, though that preceded the recent slide in oil.
"Even if you thought there was a risk the Fed might move soon, I think we're safe at least for another month," said Richard Yetsenga, head of research at ANZ.
