Asia markets advance amid global geopolitical tensions

January 05, 2026 (MLN): Asia markets opened the first full trading week of 2026 on a positive note, with major regional indices trading higher at the start of the session.

Gains came despite heightened geopolitical tensions after the United States said it had carried out a weekend operation in Venezuela that resulted in the arrest of President Nicolás Maduro.

Investor sentiment across the region remained resilient, while commodities reflected a more cautious tone.

Oil prices edged lower despite the escalation involving the oil-rich nation, according to CNBC.

Brent crude fell around 0.25% after earlier losses of more than 1%, while West Texas Intermediate (WTI) crude declined about 0.4%, as markets weighed potential supply risks against near-term demand and broader risk appetite.

Venezuela, a founding member of OPEC, holds the world’s largest proven crude oil reserves about 303 billion barrels, or roughly 17% of global reserves emphasizing its long-term importance to energy markets.

Safe-haven demand strengthened, pushing spot gold prices up more than 1% to $4,383.99 amid increased geopolitical uncertainty.

Japan led regional gains, with the Nikkei 225 jumping 2.82% in its first trading session of the year, while the broader Topix index climbed 1.42% to a record high.

Defense stocks outperformed, as Kawasaki Heavy Industries and Mitsubishi Heavy Industries advanced 5.7% and 6.4%, respectively.

South Korean equities also touched fresh highs. The Kospi index rose 2.41% to a record 4,420.92, while the small-cap Kosdaq added 0.2%.

Shares of Hanwha Aerospace surged as much as 4%, and Poongsan traded about 3% higher, reflecting strong interest in defense-related names.

In Australia, the ASX/S&P 200 edged up 0.11%. Hong Kong’s Hang Seng Index was flat, while mainland China’s CSI 300 gained 0.68%.

U.S. equity futures were steady in early Asian trading after a mixed close on Wall Street.

On Friday, the first trading day of 2026 in the U.S., the S&P 500 ended 0.19% higher at 6,858.47, supported by gains in semiconductor stocks.

The Nasdaq Composite slipped 0.03% to 23,235.63, while the Dow Jones Industrial Average outperformed, rising 319.10 points, or 0.66%, to close at 48,382.39.

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