Global Stocks Rise on AI Optimism Despite Geopolitical Tensions

Kenya, 5 January 2026 - Global stocks climbed in early trading on 5 January 2026, as investors leaned into optimism over artificial intelligence investment and robust corporate performance, even as geopolitical tensions and oil market dynamics injected caution into commodities and foreign exchange markets.

By the first full trading week of 2026, Asian equities were among the clearest beneficiaries of renewed risk appetite, with broader regional benchmarks posting notable gains.

MSCI’s Asia-Pacific index outside Japan added around 1.4%, hitting record highs, while Japan’s Nikkei 225 surged more than 3.3% after manufacturing data showed signs of stabilisation, ending a multi-month run of weakening industrial activity.

South Korea’s Kospi and Taiwan’s benchmark also climbed more than 3%, driven in part by investor confidence in continued spending on cutting-edge technology themes such as artificial intelligence.

Market participants brushed off dramatic geopolitical developments in Venezuela, including the capture of President Nicolás Maduro by U.S. forces and the installation of temporary American control, focusing on underlying economic trends rather than near-term disruption, analysts said.

According to Neil Shearing, group chief economist at Capital Economics, the removal of Venezuelan leadership “is unlikely to have meaningful near-term economic consequences for the global economy,” although the political reverberations will be watched closely.

Investors also appeared unfazed by threats from U.S. President Donald Trump of further military action in Colombia and Mexico if political cooperation faltered, with markets opting to look through geopolitical headlines ahead of a busy economic calendar packed with key data releases.

In the United States, futures for the S&P 500 were up modestly, supported by expectations that major central banks will continue accommodative policies into early 2026, even as the Federal Reserve faces imminent leadership changes and ongoing debate about future rate adjustments.

The Dow Jones indexes likewise showed positive early indications after a strong year of stock gains in 2025, while the Nasdaq Composite reflected investor caution in technology sectors outside of AI-related plays.

Commodities: Oil Under Pressure, Metals and Crypto Extend Gains

Despite buoyant equities, oil prices softened on the view that global energy markets are well supplied and are unlikely to see immediate disruption from Venezuela’s political transition.

Brent crude was last reported near $60.33 per barrel, dipping slightly as markets weighed OPEC+’s decision to keep output unchanged alongside ample inventory levels.

Gold extended its rally, gaining around 2% as safe-haven demand rose amid geopolitical uncertainty.

At the same time, the U.S. dollar strengthened against major currencies, particularly the Japanese yen, as the Bank of Japan signalled further rate hikes in response to persistent price pressures, underpinning demand for higher-yielding assets and weighing on precious metal upside outside safe-haven buying.

In the digital asset space, both Bitcoin and Ether posted gains, reflecting a renewed appetite for riskier, growth-oriented assets that have increasingly correlated with broader risk sentiment in global markets.