Tech stocks fuel rally in global markets

Oil prices fell back while the prices of precious metals surged as markets reacted calmly to the US capture of Venezuelan President Nicolas Maduro in a weekend raid. Asian shares rallied on heavy buying of tech-related stocks after modest gains on Friday on Wall Street.

The future for the S&P 500 was up 0.2 per cent while that for the Dow Jones Industrial Average was virtually unchanged. In early European trading, Germany’s DAX was up 0.8 per cent at 24,728.94, while the CAC 40 in Paris picked up 0.3 per cent to 8,216.98. Britain’s FTSE 100 edged 0.2 per cent higher, to 9,968.71.

“While the capture of Venezuelan president Maduro by American forces has dominated headlines, financial markets seem unperturbed,” Thomas Mathews of Capital Economics said in a report. “We agree with the implicit view that the near-term economic and financial implications are minor.”

But it later traded 36 cents lower at USD 56.96 per barrel. Brent crude, the international standard, gave up 34 cents to USD 60.41 per barrel. After years of neglect and international sanctions, Venezuela’s oil industry is in disrepair. It could take years and major investments before production can increase dramatically.

But some analysts expect its current output of about 1.1 million barrels a day could double or triple fairly quickly. With oil levels already plentiful, crude already was trading near its lowest level in about six months.

In any case, the US move rippled through financial markets as traders manoeuvred to account for the uncertainty brought on by President Donald Trump’s unusual military operation and his insistence that the US will be running Venezuela following Maduro’s ouster.

The price of gold rose 2.7 per cent and silver jumped 6.6 per cent. Such assets are often considered safe havens in times of geopolitical turmoil. “Investors are happy to own risk, but they want insurance in the drawer. This is confidence with a hedge, not euphoria,” Stephen Innes of SPI Asset Management said in a commentary.

Share prices in Asia shot sharply higher. In Tokyo, the Nikkei 225 jumped 3 per cent to 51,832.80, its highest close since it hit a record of 52,411.34 on Oct. 31. The index closed at a year-end high for 2025 and only resumed trading on Monday.

“Looking at the environment surrounding the markets, continuously, there are various risk factors. We must keep an eye on geopolitical risks in Ukraine, the Middle East and East Asia, the US-China trade war, monetary policies in other countries and their development, and corporate performance trends in Japan,” Hiromi Yamaji, CEO of the Japan Exchange Group, said in the market’s traditional New Year opening ceremony.

South Korea’s Kospi surged 3.4 per cent to 4,457.52, a record. It also ended Friday with a record high close. Australia’s S&P/ASX 200 closed flat at 8,728.60, while Taiwan’s benchmark climbed 2.6 per cent. In other trading early Monday, the dollar rose to 156.88 Japanese yen from 156.82 yen.