Global financial markets are recalibrating following the US military intervention in Venezuela on January 3, 2026, with Asia-Pacific equities defying geopolitical tensions to post robust gains. While Colombia and five other nations condemned the action as a "dangerous precedent," investors initially responded with cautious optimism, driven by divergent sector performances.
Commodity markets revealed split trends: London spot gold rose 2.13% to $4,422/oz on January 5, while Brent crude dipped 0.95% to $60.75/barrel. Ipek Ozkardeskaya, a Swissquote analyst, noted markets were "barely flinching," attributing stability to contained risk appetite and AI-driven equity rallies.
Asia-Pacific indices led global gains, with Japan’s Nikkei 225 climbing 2.97% and the Republic of Korea’s KOSPI hitting a historic high with a 3.43% surge. The Chinese mainland’s Shanghai Composite rose 1.38% to 4,023.42, reflecting regional confidence in tech and green energy sectors.
Gary Tan of Allspring Global Investments highlighted credit market resilience, predicting stabilized risk premiums for emerging markets. European indices followed suit, with Germany’s DAX and the Euro Stoxx 50 gaining up to 0.72% in early trading.
As markets enter a phase of heightened volatility, analysts urge vigilance toward energy supply chains and central bank responses to potential inflationary pressures from precious metals.
