Asian stocks climb led by tech firms, while oil prices fluctuate following the US ouster of Venezuelan leader Nicolas Maduro and his arrest
HONG KONG: Asian stocks rose on Monday, propelled by a fresh rally in technology firms, while oil prices swung as investors assessed the impact of the US ouster of Venezuelan leader Nicolas Maduro.
Traders focused on the ongoing artificial intelligence boom and hopes for further US interest rate cuts, despite the geopolitical risk added by the South American leader’s removal.
The first full week of 2026 will also see key US jobs data released, which could influence the Federal Reserve’s decisions on borrowing costs.
Investors are also watching for clues on who US President Donald Trump will choose to lead the central bank when Jerome Powell steps down in May.
In early trade, Asian markets advanced across the board, led by those with a heavy tech presence.
Tokyo’s Nikkei 225 surged 2.8%, buoyed by a 4% gain for investor SoftBank and a 5% advance for chip equipment maker Tokyo Electron.
Seoul’s Kospi gained more than 2%, with SK Hynix up over 3% and Samsung Electronics soaring 4.6%.
Taipei’s market rose 2.5% as chip titan TSMC rocketed more than 5%.
Hong Kong, Shanghai, Sydney, Singapore, Wellington and Manila also posted solid gains.
The rally suggests investors are brushing off concerns about stretched tech valuations and warnings over returns on massive AI investments.
“This move now stands as the strongest start to a year for Asian equities since 2012,” wrote Stephen Innes of SPI Asset Management.
Kyle Rodda at Capital.com warned that valuations remain near levels last seen during the Dot.com bubble.
“Most simply put, the markets probably need to see more evidence of resilient US growth, continued disinflation and therefore US rate cuts, strong corporate earnings, and the pay-offs from artificial intelligence to keep on rising,” he said.
Safe-haven gold was up more than 1% at about $4,400 per ounce.
Oil prices shifted between gains and losses after US forces attacked Venezuela early Saturday, bombing military targets and arresting Maduro.
Venezuela holds the world’s largest proven oil reserves, and more of its crude on the market could exacerbate oversupply concerns.
Trump said the United States will now “run” Venezuela and send US companies to fix its dilapidated oil infrastructure.
Analysts say substantially lifting Venezuela’s oil production will not be easy, quick or cheap after years of under-investment and sanctions.
The country currently pumps around one million barrels per day, down from roughly 3.5 million in 1999.
“Any recovery in production would require substantial investment given the crumbling infrastructure,” UBS analyst Giovanni Staunovo told AFP.
Investing today also holds little appeal with oil prices weighed down by a supply glut.
