Asia markets are set to trade cautiously after U.S. President Donald Trump suffered a legislative defeat last Friday when Republican leaders pulled a bill to overhaul the U.S. health care system and as investors mull chances an extension of coordinated output cuts by OPEC and key producers.
Nikkei futures were lower than the benchmark index’s last finish at 19,262.53, with Osaka futures traded down 19,110 and Chicago futures down at 19,075.
Toshiba’s U.S. subsidiary Westinghouse may file bankruptcy on Tuesday and seek support from south Korea’s Korea Electric Power, the Nikkei business daily reported.
Australia’s ASX 200 fell 0.49 percent in early trade, weighed by its materials sub-index which fell 1.2 percent.
Australian miner South32 said Monday morning that it would buy back $500 million of its shares. Shares of South32 fell 1.47 percent.
U.S. stocks had a choppy trading session last Friday, after media reports that the House pulled a key health care vote that was seen as crucial for President Donald Trump’s agenda.
The Dow Jones industrial average was down 0.29 percent to 20,596.72, the S&P 500 slipped 0.08 percent to close at 2,343.98 and the Nasdaq composite added 0.19 percent to 5,828.74.
“The failure of the US Republican party to pass legislation repealing the universal healthcare act may come back to bite markets,” said Michael McCarthy, chief market strategist at CMC Markets, in a Monday note.
“The failure of the Obamacare repeal is not economically significant, but a hostile parliament threatens the positive outlook,” he said.
The White House warned rebellious conservative lawmakers that they should support Trump’s agenda, or he may bypass them on future legislative fights, Reuters reported.
On the energy front, Brent crude futures rose 0.39 percent at $51.00 while U.S. crude gained 0.35 percent at 48.15 a barrel. A joint committee of ministers from OPEC and non-OPEC oil producers has agreed to review whether a global pact to limit supplies should be extended by six months, according to a statement on Sunday.
The dollar was weaker at 99.332 against a basket of currencies at a four-and-a-half month low. Against the greenback, the yen was weaker at 110.54, falling below the 111 levels seen last Friday, and the Australian dollar remained steady at $0.7629.
Investors are also focused on Prime Minister Theresa May’s plans to set out how her government plans to restore sovereignty over Britain’s laws in a speech scheduled for Thursday. The pound was last quoted at 1.2518.