Asia markets mixed, U.S. Venezuela strike fuels defense stock rally

January 06, 2026 (MLN):  Asian markets traded mixed on Tuesday, but defense stocks across the region extended their rally for a second consecutive session as investors weighed rising geopolitical risks following the U.S. attack on Venezuela and the capture of ousted leader Nicolas Maduro.

In Japan, defense-related shares led gains. Kawasaki Heavy Industries climbed 3.53%, while IHI advanced 3.23%.

The broader market was firm, with the Nikkei 225 rising 0.69% and the Topix jumping 1.3% to a fresh record high, CNBC reported.

South Korean defense stocks also surged. Korea Aerospace Industries soared as much as 11%, Poongsan gained over 6%, and Hanwha Aerospace edged up 0.59%.

However, the wider market showed little momentum, with the Kospi finishing flat and the tech-heavy Kosdaq slipping 0.43%.

Elsewhere in the region, Australia’s ASX/S&P 200 fell 0.42%. Hong Kong stocks outperformed, with the Hang Seng Index climbing 1.6%, driven by strong gains in basic materials and real estate.

China Hongqiao, one of the world’s largest aluminum producers, jumped 7.89%, while Zijin Mining Group rose 5.57%. On the mainland, China’s CSI 300 added 0.47%.

U.S. equity futures were flat during early Asian trading hours.

Overnight on Wall Street, stocks advanced despite the U.S. military action in Venezuela, rising crude oil prices also supported sentiment.

The Dow Jones Industrial Average surged 594.79 points, or 1.23%, to close at 48,977.18, marking a new all-time high.

The S&P 500 gained 0.64% to end at 6,902.05, while the Nasdaq Composite rose 0.69% to finish at 23,395.82.

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