Asian markets rose on Tuesday, buoyed by Wall Street’s record‑breaking start to the year and a surge in artificial‑intelligence‑linked tech stocks. The rally persisted despite concerns over the ouster of Venezuelan President Nicolás Maduro and a surprise U.S. raid on Caracas. Oil prices steadied after an initial bout of volatility, and traders largely ignored the geopolitical developments.
Attention has shifted to U.S. monetary policy, with key data releases this week expected to shape the Federal Reserve’s interest‑rate decision at the end of the month. Analysts remain optimistic about equities, driven by growth in the tech sector, especially artificial intelligence. Charu Chanana, chief investment strategist at Saxo Markets, said, “Global equities are likely to keep looking through the geopolitical shock unless it threatens the broader supply chain or tightens financial conditions.”
On Wall Street, the Dow closed at a new record, lifted by tech giants such as Amazon and Meta, as well as energy companies. The S&P 500 and Nasdaq also rose, supported by data showing U.S. manufacturing activity contracted for the 10th straight month in December, giving the Fed room to cut rates. Upcoming jobs data may further justify easing, despite the central bank’s suggestion of a potential pause.
In Asia, Hong Kong’s Hang Seng Index gained 1.5%, while Tokyo’s Nikkei 225 and Shanghai’s Composite also rose. Seoul’s market slipped after soaring more than 3% on Monday, and Sydney’s market fell despite a 20% surge in Australia’s BlueScope Steel following a potential takeover bid. Oil prices slipped, with West Texas Intermediate down 0.5% at $58.01 per barrel and Brent at $61.49 per barrel, down 0.4%.
Developments in Venezuela have raised concerns about global oil supply, but experts note that a rapid output ramp‑up is unlikely due to the country’s infrastructure challenges, low prices and political uncertainty. As investors continue to monitor the situation, the focus remains on U.S. monetary policy and the tech sector’s growth, which are expected to drive markets in the coming weeks. With key data releases and the Federal Reserve’s meeting on the horizon, investors are poised to make informed decisions about their investments.
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