Global shares fall on weak global cues

Tokyo: Global shares were mostly lower on Tuesday as oil prices surged after a meeting of oil producing nations (Opec) was postponed, with little else guiding trading after the US Independence Day holiday.

France's CAC 40 dropped 0.5per cent in early trading to 6,534.23, while Germany's DAX lost 0.6per cent to 15,561.04. Britain's FTSE 100 edged down 0.2per cent to 7,153.81. The future for the Dow industrials inching less than 0.1per cent lower to 34,663.00. The S&P 500 future lost 0.1per cent to 4,339.88. Talks among members of the OPEC cartel and allied oil producing countries have broken off in the midst of a standoff with the United Arab Emirates over production levels. No debt has been set for the next meeting. US benchmark crude rose $1.28 to $76.43 a barrel. Brent crude, the international standard, added 24 cents to $77.40 per barrel. With oil prices pushing toward $80 a barrel, that "raises the risk of a price war if the conflict escalates, like in March last year," Harpreet Bhal of ActivTrades said in a commentary.

"Higher energy costs could fan inflationary stresses and add to the case for global central banks to temper emergency stimulus in the months ahead," Bhal said. In Asian trading, Japan's benchmark Nikkei 225 edged up 0.2per cent to 28,643.21. South Korea's Kospi added 0.4per cent to 3,305.21. Australia's S&P/ASX 200 fell 0.7per cent to 7,261.80. Hong Kong's Hang Seng lost 0.3per cent to 28,072.86, while the Shanghai Composite slipped 0.1per cent to 3,530.26. The pandemic remains a major risk that could hinder the recovery in some countries with fresh outbreaks of COVID-19, said Yeap Jun Rong, a market strategist at IG in Singapore. "This comes as the vaccination rate in Asia has been largely trailing behind other regions, leading to lockdowns being the go-to option to contain virus spreads," Yeap said in a report.

Worries about health risks are growing ahead of the Tokyo Olympics, which begin later this month with 11,000 Olympic athletes and 4,400 Paralympians entering Japan from more than 200 countries. Tens of thousands of judges, sponsors, dignitaries and media also are attending. The government is determined to go ahead with the games, despite warnings from medical experts, promising border controls and curbs on spectators to keep the events safe. While the public remains skeptical, with a majority of people opposed to holding the Games this year, any protests have been muted in this country known for its public order and decorum.