Asian markets rise, defense stocks lead after after U.S. captures Venezuela’s Maduro

Asia markets rose as investors responded to U.S. claims of Maduro’s capture.
Oil prices slid despite Venezuelan tensions, signaling limited supply fears.
Defense stocks jumped across Japan and South Korea amidst geopolitical risks.

Asia-Pacific markets began the first full trading week of 2026 on a stronger note following the U.S. said it had attacked Venezuela and captured President Nicolas Maduro over the weekend. Oil prices edged lower as markets weighed the potential impact of geopolitical tensions.

U.S.

U.S. authorities said Maduro and his wife, Celia Flores, were flown to New York following the operation and charged with narco-terrorism conspiracy and other crimes. An indictment said drug trafficking had “enriched and entrenched Venezuela’s political and military elite.”

Oil prices fell following the escalation involving the oil-rich nation. brent crude

prices slipped more than 1% sooner before paring losses, and were last trading 0.25% lower, while the West Texas Intermediate
crude prices fell 0.4%.

Venezuela, a founding member of OPEC, holds the largest certified crude oil reserves in the world, at 303 billion barrels, or about 17% of the global total, according to the U.S. Energy Information Administration.

Spot gold prices advance more than 1% to $4,383.99

Japan’s benchmark Nikkei 225

The Index jumped 2.82% in its first trading session of the year, while the Topix Index added 1.42% to a record high. Defense stocks were among the top gainers on the index, with Kawasaki Heavy Industries
Mitsubishi Heavy Industries
adding 5.7% and 6.4%, respectively.

South Korea’s Kospi index climbed 2.41% to a record high of 4,420.92, and the small-cap Kosdaq added 0.2%. Shares of defense giant Hanwha Aerospace jumped as much as 4%, while Poongsan traded 3% higher.

Australia’s ASX/S&P 200 increased 0.11%.

Hong Kong’s Hang Seng Index
was flat, while the continent CSI 300 rose 0.68%

U.S. equity futures were stable in early Asian hours.

On Friday statesside, the first trading day of 2026, the S&P 500 closed slightly higher as gains in semiconductor names kept the index afloat.

The benchmark closed up 0.19% at 6,858.47, while the NASDAQ Composite fell 0.03% to finish at 23,235.63. The two had been solidly positive earlier in the day, with the S&P 500 and the tech-heavy Nasdaq trading higher by 0.7% and 1.5% at their peaks, respectively.

The Dow Jones Industrial Average moved up 319.10 points, or 0.66%, to settle at 48,382.39.

SINGAPORE, Jan 5 (Reuters) –

Asian stocks climbed and oil prices were choppy on Monday as investors considered the implications of U.S. sanctions. military action in Venezuela to prepare for a packed week of economical data releases in the first full trading week of the year.
MSCI’s widest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab was up 1.2%, while S&P 500 e-mini futures were 0.1% higher.

Investors are assessing the ramifications of a dramatic weekend of events, which saw the U.S. capture Venezuelan President Nicolas Maduro. President Donald Trump said on Saturday he was putting Venezuela under temporary US control.

“The removal of Venezuelan President Nicolas Maduro by the U.S. is unlikely to have meaningful near-term economic consequences for the global economy,” said Neil Shearing, group chief economist at Capital Economics. “But its political and geopolitical ramifications will reverberate.”

Brent crude futures edged up 0.2% to $60.87 as oil markets assessed the effect from the U.S. intervention in Venezuela and a vote by OPEC+ on Sunday to keep oil output unchanged.
“A bearish oil price story is highly unlikely. Venezuela is going to need a lot of help, both capital and engineering, to get its production nowhere near its maximum, which was never that impressive to begin with,” said Marko Papic, chief strategist at BCA Research in Los Angeles.

Asian markets

“We are therefore not sellers of oil in this situation and, in fact, think that upside risks could develop,” Papic added.
Among regional share markets, the Nikkei 225 (.N225), opens new tab soared 2.8% to near a record high reached two months ago. Japanese stocks extended gains as data showed manufacturing activity stabilized in December, ending a five-month streak of worsening.

Seoul’s Kospi (.KS11), opens new tab and Taiwan (.TWII), opens new tab climbed more than 2% apiece to hit fresh record highs.
Markets in China were more muted, with the Hang Seng Index up 0.1%, pulled down by Chinese oil companies as a gauge of Hong Kong-listed energy stocks fell 3.1%. Australian shares (.AXJO), opens new tab were up 0.1%.

“Given the unexpected turn of events in Venezuela over the weekend, it remains to be seen whether the Trump administration has an appetite for more regime changes,” such as in Iran, he said. Vasu Menon, managing director for investment strategy at OCBC in Singapore.

“The strategic calculations are unraveling against the backdrop of a midterm election year, and developments are unpredictable,” he said. “This uncertainty could keep oil prices supported. A more fractious geopolitical environment may buoy haven assets like precious metals.”

The U.S. The US dollar index, which measures the greenback’s strength against a basket of six currencies, was last up 0.1% at 98.55, extending recent gains into a fifth consecutive day.
The yield on the U.S. The 10-year Treasury bond was up 0.2 basis points at 4.187%.
Gold tacked on 1% to trade at $4,371.29.
Bitcoin climbed 0.2% to $91,452.90, while ether was flat at $3,141.29.

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