* U.S. stock futures down 0.2 pct, Nikkei down 0.4 pct
* Oil prices slip on doubts on production cut deal this week
* U.S. bond yields, dollar slip from highs
By Hideyuki Sano
TOKYO, Nov 28 (Reuters) - Oil prices tumbled on Monday on
worries that producer countries may not be agree on a deal to
cut output, pressuring U.S. stock futures and Asian shares.
Brent crude futures fell 1.9 percent in early Monday trade
to $46.29 a barrel, after having slipped 3.6 percent on
Friday on rising doubts over whether the Organization of the
Petroleum Exporting Countries will reach an output deal.
Saudi Arabia said on Friday it will not attend talks on
Monday with non-OPEC producers to discuss supply
As lower oil prices reduce inflationary pressure, they
sapped momentum for a sell-off in U.S. Treasuries and a rally in
the dollar, the market's favourite play since the U.S. election
on the view that President-elect Donald Trump's policies will
likely lift inflation.
U.S. stock futures slipped 0.2 percent in early trade
while Japan's Nikkei fell 0.5 percent.
Shares in Australia and South Korea also
dropped about 0.3 percent, though MSCI's broadest index of
Asia-Pacific shares outside Japan as flat as a
weaker dollar offset losses in local share prices.
"Oil prices have fallen considerably on worries about the
deal. That would pressure energy shares, and could hit the
entire stock markets. Given their rally in recent days, it's no
surprise to see some adjustment," said Masahiro Ichikawa, senior
strategist at Sumitomo Mitsui Asset Management.
Saudi Arabia's energy minister Khalid al-Falih said on
Sunday that he believed the oil market would balance itself in
2017 even if producers did not intervene, and that keeping
output at current levels could therefore be justified.
His comments raised worries that preliminary agreement
reached in September that OPEC countries would reduce its
production to between 32.5 million and 33 million barrels per
day may fall apart.
OPEC oil ministers meet on Wednesday in an effort to
finalise that deal; OPEC also wants non-OPEC producers such as
Russia to support the intervention by curbing their output.
Wall Street's three main indexes had
closed at record highs on Friday, having risen for three weeks
in a row.
Softer oil prices helped to underpin U.S. bonds, which had
been bettered by expectations that Trump's policies will
increase spending and debt as well as spur growth and inflation,
all of which would erode the value of bonds.
The yield on 10-year U.S. Treasuries dipped
about 2 basis points to 2.348 percent, off its 16-month high of
2.417 percent touched on Thursday.
That in turn prompted players to take profits in the dollar,
which had risen on expectations higher U.S. bond yields would
encourage investors to put more money in the dollar assets.
The dollar's index against a basket of six major currencies
printed at 101.30, slipping 0.2 percent on day and
off its 13 1/2-year high of 102.05 touched on Thursday.
Against the yen, the dollar dropped 0.5 percent to 112.59
yen, slipping further from its eight-month high of 113.90
set on Friday.
The euro traded at $1.0600, up 0.3 percent and off
its near one-year low of $1.0518 touched on Thursday.
The single currency has so far shown limited reaction to the
French conservatives' presidential primaries on Sunday.
Former Prime Minister Francois Fillon, a socially
conservative free-marketeer, won the run-off, setting up a
likely showdown next year with far-right leader Marine Le Pen
that the pollsters expect him to win.
Gold bounced back to $1,187.0 per ounce from Friday's
low $1,171.5, which was its lowest level since early February.
(Editing by Kim Coghill)