Asian stocks surged on Monday, driven by a fresh rally in tech firms, while oil prices dipped as investors assessed the impact of the US ouster of Venezuelan leader Nicolas Maduro. The removal of Maduro added to geopolitical risk, but traders focused on the ongoing artificial intelligence boom and potential US interest rate cuts.
The first full week of business in 2026 will see the release of key jobs data, which could influence the Federal Reserve’s decision on borrowing costs. Investors are also awaiting an announcement on who will succeed Jerome Powell as the head of the central bank in May.
Asian markets with a strong tech presence led the gains, with Tokyo’s Nikkei 225 rising 3% and Seoul’s Kospi gaining over 3%. Taipei’s stock market jumped 2.6% to a record high, driven by a 5% surge in chip titan TSMC’s stock. Other Asian markets, including Shanghai, Singapore, and Hong Kong, also saw significant gains.
European markets, including London, Paris, and Frankfurt, started the day on a positive note. The gains suggest investors are brushing off concerns about valuations in the tech sector and warnings about the timing and size of returns on huge AI investments.
Stephen Innes at SPI Asset Management noted that the move marks the strongest start to a year for Asian equities since 2012, following a global market that delivered its best annual return since 2017. However, Kyle Rodda at Capital.com cautioned that valuations remain high, and allocation to equities is elevated, while allocation to cash is low.
The price of gold rose over 1% to around $4,400 per ounce, while oil edged down as investors assessed the outlook after the US attack on Venezuela. Venezuela has the world’s largest proven oil reserves, but its oil production has declined significantly in recent years due to under-investment and sanctions.
The US plans to “run” Venezuela and send US companies to fix its oil infrastructure, but analysts say substantially lifting oil production will not be easy, quick, or cheap. Any recovery in production would require substantial investment, given the crumbling infrastructure resulting from years of mismanagement and under-investment.
Key figures at around 0800 GMT included the Tokyo Nikkei 225 up 3% at 51,832.80, the Hong Kong Hang Seng Index flat at 26,347.24, and the London FTSE 100 up 0.2% at 9,971.50. West Texas Intermediate crude oil was down 0.9% at $56.83 per barrel, while the euro/dollar was down at $1.1689. The significance of these market movements will continue to unfold as investors await further developments in the US-Venezuela situation and the release of key economic data.
