Asian Stocks Rise as Investors Assess US Action in Venezuela, Oil Prices Remain Volatile

Asian stock markets advanced on Monday while oil prices remained volatile as investors weighed the potential impact of US military action in Venezuela ahead of a busy week of key economic data releases, marking the first full trading week of the year. Market sentiment reflected cautious optimism as traders assessed geopolitical risks alongside upcoming macroeconomic indicators.

MSCI’s broad Asia-Pacific index excluding Japan rose 1.2 percent, while S&P 500 e-mini futures edged up 0.1 percent, signaling a positive tone in global equity markets. Investor focus remained on the aftermath of dramatic weekend developments, during which the United States captured Venezuelan President Nicolas Maduro. US President Donald Trump announced on Saturday that Venezuela would be placed under temporary American control.

Economists suggested that while the move is unlikely to trigger immediate economic disruption globally, its political and geopolitical consequences could be far-reaching. Capital Economics group chief economist Neil Shearing noted that the removal of Maduro is not expected to have meaningful short-term economic effects on the global economy, but warned that the broader political implications will continue to resonate.

Oil markets reacted cautiously, with Brent crude futures inching up 0.2 percent to $60.87 a barrel. Prices reflected a balance between uncertainty surrounding US intervention in Venezuela and a decision by OPEC+ to keep oil production levels unchanged. Analysts indicated that a sharp drop in oil prices is unlikely, as Venezuela’s oil sector would require significant investment and technical support to restore production levels. BCA Research chief strategist Marko Papic said the situation could even present upside risks for oil prices rather than prompting selling pressure.

Regional equity markets posted strong gains, led by Japan’s Nikkei 225, which surged 2.8 percent to approach a record high last seen two months ago. Japanese stocks benefited from data showing manufacturing activity stabilized in December, ending a five-month period of contraction. Elsewhere in Asia, South Korea’s Kospi and Taiwan’s main index both climbed more than 2 percent, reaching fresh record highs and reinforcing the region’s positive momentum