Asia Pacific shares decline as Brexit looks set for a delay again

Asia Pacific markets dipped in early trade, as developments on Brexit overnight meant the deadline for the U.K. to leave the EU would likely be delayed again.

Australia's S&P/ASX 200 tumbled 0.51% in the morning. Japan's markets reopened after a holiday on Tuesday, with the Nikkei 225 declining 0.27% in early trade.

South Korea's Kospi was down 0.28%.

Overall, MSCI's broadest index of Asia-Pacific shares outside Japan was 0.15% lower.

Elsewhere, in South Korea, major Apple supplier LG Display is set to report its third-quarter earnings on Wednesday at 2:30 p.m. HK/SIN. Samsung Biologics is also set to report third-quarter earnings.

Thailand's markets are closed for a holiday.

Overnight, the sterling was hit by Brexit developments. U.K. lawmakers voted to reject a limited time frame for reviewing legislation related to Britain's withdrawal from the European Union. It now means that the U.K. is almost certainly not going to leave the U.K. on October 31— the current deadline, and the EU may provide an extension to prevent a no-deal Brexit occurring.

In reaction, the British pound fell 0.1% versus the dollar. It fell further following the news— last at 1.2864, below the 1.29 level where it had been holding.

"Ahead of the Brexit votes markets were essentially marking time, but reaction to the vote news now sees the pound as the big underperformer, down 0.69% relative to levels this time yesterday. But at 1.2899, is probably fair to say the market remains relatively upbeat on GBP fortunes," said Rodrigo Catril, a senior currency strategist at the National Australia Bank, in a morning note.

On Wall Street, stocks fell as investors digested earnings reports. More than 19% of S&P 500 companies have reported quarterly numbers and of those, nearly 80% have beaten expectations.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.496, sliding from an earlier high of 97.573.

The Japanese yen traded at 108.29, strengthening from 108.51 seen earlier. The Australian dollar changed hands at $0.6851 following a low of $0.6849 seen earlier.

Oil prices, meanwhile, surged higher on reports that Organization of the Petroleum Exporting Countries and its allies could be thinking of cutting production further, according to a Reuters report.

Earlier, Brent crude oil settled 1% higher at $59.59 a barrel, while U.S. West Texas Intermediate crude rose 1.6% to $54.16 per barrel. In the morning during Asia hours, some gains were trimmed, with Brent crude falling 0.35% to $59.49, while U.S. crude hovered around the same level — down 0.57% to $54.17.

What's on tap:

Here's the economic calendar for Wednesday (all times in HK/SIN):

1:00 p.m.: Singapore consumer price index

2:30 p.m.: LG Display third-quarter earnings

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