SYDNEY (Reuters) - Asian shares were subdued Monday ahead of a week packed with major economic events, while Mexico's peso MXN= firmed as exit polls pointed to a decisive victory for presidential front-runner Andres Manuel Lopez Obrador's party.
Dealers said the seemingly clear win would at least settle one source of political uncertainty. Yet leftist Obrador is also expected to inject a dose of nationalism into government and sharpen divisions with U.S. President Donald Trump.
Oil prices had taken an early spill after Trump tweeted that Saudi Arabia had agreed to lift oil production by “maybe up to 2,000,000 barrels”.
The missive was later downplayed by the White House and Saudi Press Agency.
Brent crude LCOc1 was down 61 cents at $78.62 a barrel, while U.S. crude fell 62 cents to $73.53. The pullback was modest given U.S. crude rallied more than 8 percent last week, while Brent gained more than 5 percent.
In share markets, Japan's Nikkei .N225 dipped 0.1 percent, with a survey of manufacturers showing sentiment had darkened a shade in the face of trade war threats.
The purchasing managers’ index (PMI) still edged higher for June, though exports orders softened.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was a fraction firmer in early trade. The index shed 2 percent last week as trade concerns clouded the outlook for Chinese growth and pressured asset prices there.
Tension is growing ahead of a July 6 deadline when the U.S. is due to impose US$34 billion of tariffs on Chinese exports.
“The key risk for
