Prime Highlights
- Asia-Pacific markets began the first full trading week of 2026 higher, showing resilience despite geopolitical developments involving Venezuela.
- Investor focus remained on economic fundamentals and sector opportunities, with defense and semiconductor stocks supporting market gains.
Key Facts
- Japan’s Nikkei 225 and South Korea’s KOSPI reached record highs, while India’s Nifty 50 and China’s CSI 300 traded in positive territory.
- Oil prices edged lower, while gold prices rose more than 1% as investors balanced risk appetite with demand for safe-haven assets.
Background:
Asia-Pacific markets started the first full trading week of 2026 on a strong note, with investors largely brushing aside geopolitical tensions linked to a U.S. operation in Venezuela. Equity markets across the region posted gains, while oil prices edged lower and gold prices climbed as traders assessed the broader impact on global markets.
Over the weekend, U.S. authorities confirmed that Venezuelan President Nicolas Maduro and his wife, Cilia Flores, were captured and flown to New York, where they were charged with narco-terrorism conspiracy and other offenses. U.S. officials said the indictment claims drug trafficking helped strengthen and enrich Venezuela’s political and military leadership. Despite the geopolitical concerns, markets remained focused on economic fundamentals and sector opportunities.
Oil prices moved lower despite Venezuela’s status as a major oil-producing nation. Brent crude fell more than 1% earlier in the session before trimming losses, last trading around 0.25% lower. West Texas Intermediate crude declined approximately 0.4%. Venezuela holds the world’s largest proven crude oil reserves, estimated at 303 billion barrels, representing about 17% of global reserves, according to the U.S. Energy Information Administration.
Equity markets across Asia showed notable strength. Japan’s Nikkei 225 surged 2.82% in its first trading session of the year, while the broader Topix index gained 1.42% to reach a record high. Defense-related stocks led gains, with Kawasaki Heavy Industries and Mitsubishi Heavy Industries rising sharply. South Korea’s Kospi index climbed to a fresh record, supported by strong performances in defense and aerospace stocks, including Hanwha Aerospace.
Elsewhere, Australia’s S&P/ASX 200 posted modest gains, while Hong Kong’s Hang Seng Index was largely unchanged. Mainland China’s CSI 300 rose as investor confidence remained steady. In India, the Nifty 50 also traded slightly higher in early deals.
In the commodities market, gold prices climbed more than 1%, showing continued demand for safe-haven assets as geopolitical tensions remained in focus.
U.S. equity futures were mostly steady during Asian trading hours after a mixed close on Wall Street on Friday. The S&P 500 and the Dow Jones Industrial Average ended the session higher, helped by gains in semiconductor stocks, while the Nasdaq Composite finished slightly lower.
