Asian stock markets experienced a notable rally on Monday, buoyed by robust buying activity in technology shares, following modest gains noted in the United States on Friday. The major U.S. stock indexes showed mixed futures performance early Monday, with the S&P 500 futures climbing slightly by 0.2% and Dow Jones Industrial Average futures remaining mostly steady. Across the Atlantic, European markets opened with positive movements, led by Germany's DAX index advancing 0.8% to 24,728.94, France's CAC 40 inching up 0.3% to 8,216.98, and the UK's FTSE 100 rising 0.2% to 9,968.71.
Despite the headline-grabbing news of Venezuelan President Nicolas Maduro's capture during a U.S.-led operation, financial markets maintained a steady demeanor. Thomas Mathews of Capital Economics remarked in a recent report that markets appear seemingly unshaken by the development, aligning with views that the immediate financial and economic consequences should remain limited.
Early trading saw U.S. crude oil prices initially tick upward, yet by midday they had decreased by 36 cents, settling at $56.96 per barrel. Brent crude, the international benchmark, also declined by 34 cents to $60.41 per barrel. Venezuela's oil sector, having suffered from years of neglect and international sanctions, remains in a state of disrepair, demanding considerable investment and time to regain previous production capacity. Current output hovers around 1.1 million barrels a day, though analysts project that with substantial capital infusion, production could potentially double or even triple in a relatively short period.
The global oil market is presently well-supplied, and prices have drifted close to six-month lows prior to this event, indicating a cushion against immediate supply shocks. Meanwhile, the geopolitical nature of the U.S.'s military action and President Donald Trump's declaration of managing Venezuela post-Maduro's removal prompted market participants to reassess risk exposure.
Investors sought refuge in precious metals, with the price of gold rising 2.7% and silver surging 6.6%. These assets are traditionally viewed as safe havens amid geopolitical conflicts and market uncertainties. Stephen Innes of SPI Asset Management described the current market sentiment as "confidence with a hedge," highlighting that investors remain willing to accept risk while maintaining protective assets.
The Asian stock markets reflected strong bullish momentum. Tokyo's Nikkei 225 index surged 3%, closing at 51,832.80, its highest point since October 31, 2025, and marking the year-end high for 2025 after the market resumed trading on Monday following a holiday period. Market observers noted continuing geopolitical concerns encompassing regions like Ukraine, the Middle East, and East Asia, alongside issues such as the ongoing U.S.-China trade tensions, international monetary policy adjustments, and the performance of Japanese corporations.
South Korea's Kospi index rose 3.4% to close at 4,457.52, setting a new record and continuing the gains recorded on the prior Friday. Australia's S&P/ASX 200 remained largely flat at 8,728.60, while Taiwan's principal benchmark gained 2.6%. Currency markets showed subtle movements, with the U.S. dollar strengthening slightly against the Japanese yen, changing from 156.82 to 156.88 yen, while the euro dipped from $1.1726 to $1.1680.
Looking ahead, this week represents the first full trading week of the new year, bringing with it significant U.S. economic indicators. These include private sector reports on the services industry—the dominant segment of the American economy—and consumer sentiment measures, as well as government employment data. Such information is expected to provide the Federal Reserve with vital insights before their upcoming policy meeting scheduled for late January.
On the preceding Friday, U.S. equity markets registered modest gains. The S&P 500 advanced by 0.2%, and the Dow Jones Industrial Average increased 0.7%. The Nasdaq composite index dipped less than 0.1%, influenced by declines in heavyweight technology stocks such as Microsoft, down 2.2%, and Tesla, down 2.6%, subsequent to Tesla's announcement of consecutive years of declining sales. These large-cap firms exert considerable sway over market direction, at times causing significant short-term movements in stock indexes.