Asian stocks traded higher on Monday as investors looked past U.S. military action over the weekend in Venezuela and shifted focus to upcoming economic data and corporate earnings.
The dollar was a tad higher, extending gains for a fifth consecutive session after the U.S. attacked Venezuela and captured its president, Nicolas Maduro.
The secretary of state said the United States will retain “multiple levers of leverage” if Venezuela’s leaders don’t “make the right decisions”.
Analysts said the U.S. action in Venezuela is unlikely to have meaningful near-term economic consequences for the global economy.
Oil prices swung between gains and losses after OPEC+ decided to keep output unchanged through the first three months of the year.
U.S. 10-year Treasury bond yields edged up slightly while gold traded up nearly 1.7 percent on safe haven demand amid heightened geopolitical risks.
China’s Shanghai Composite index was up 0.7 percent despite fresh signs of slowing business growth. A private sector survey showed today that China’s services activity expanded at its slowest pace in six months in December.
Hong Kong’s Hang Seng added 0.2 percent. Japan’s Nikkei index surged 2.6 percent to its highest in two months as data showed Japan’s manufacturing activity steadied in December after five months of contraction.
Soul’s Kospi average jumped 2.4 percent to hit a fresh record high as the leaders of China and South Korea hold their second meeting in as many months in Beijing, with closer economic ties as well as the recalcitrant North on the agenda.
Australia’s benchmark S&P/ASX 200 was up 0.2 percent while New Zealand’s benchmark S&P/NZX-50 index gained 0.3 percent.
U.S. stocks fluctuated before ending mostly higher on Friday as Wall Street kicked off trading in 2026 after its third consecutive year of double-digit percentage gains.
While the tech-heavy Nasdaq Composite edged down marginally, the S&P 500 rose 0.2 percent and the Dow added 0.7 percent to snap a four-day losing streak.
Market Analysis
Asian Shares Climb Despite Weak China Data, Rising Geopolitical Tensions
2026-01-05 02:24:45
