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Asian Markets Rise as Investors Weigh Venezuela Crisis, Oil Prices, and Key Economic Data

Asian Markets Rise as Investors Weigh Venezuela Crisis, Oil Prices, and Key Economic Data. Source: Flickr

Asian stock markets opened higher on Monday as investors largely looked past recent U.S. military action in Venezuela and turned their attention to a busy week of global economic data releases. In the first full trading week of the year, market sentiment was supported by gains across regional equities, modest strength in U.S. futures, and a relatively stable outlook for oil prices.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose around 0.3%, reflecting cautious optimism among investors. At the same time, S&P 500 e-mini futures edged up 0.1%, suggesting a steady start for Wall Street. Market participants are closely assessing the potential implications of a dramatic weekend that saw the United States capture Venezuelan President Nicolas Maduro and place the country under temporary American control, as announced by President Donald Trump.

According to Neil Shearing, group chief economist at Capital Economics, the removal of Maduro is unlikely to have significant short-term economic consequences for the global economy. However, he noted that the political and geopolitical ramifications could be far-reaching, keeping investors alert to potential longer-term risks.

Oil prices were choppy as traders evaluated both the U.S. intervention in Venezuela and OPEC+’s decision to keep output unchanged. WTI crude futures fluctuated between gains and losses, last trading slightly higher at $57.36 per barrel. Analysts such as Marko Papic of BCA Research argued that a bearish outlook for oil prices is unlikely, citing Venezuela’s limited production capacity and the substantial investment required to restore output. He added that upside risks for oil prices could still emerge.

In equity markets, Japan’s Nikkei 225 surged 2.5% to a two-month high, while South Korea’s Kospi climbed 2% to reach a record level. Meanwhile, the U.S. dollar index extended its rally for a fifth consecutive session, and U.S. Treasury yields edged higher. Gold prices jumped 1%, underscoring continued demand for safe-haven assets, while Bitcoin and ether showed modest movement as crypto investors remained cautious.

Overall, global markets remain focused on economic data, geopolitical developments, and energy prices as the year begins.

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