Asia-Pacific markets opened with a split performance on Tuesday, following a record-setting rally on Wall Street. The cautious trading reflects investors' ongoing assessment of global geopolitical tensions in the wake of the U.S. military action in Venezuela and the capture of former leader Nicolas Maduro.
Japan's equity benchmarks led the gains, with the Nikkei 225 rising 1.12% and the Topix index jumping 1.48% to set a fresh record high. In contrast, South Korea's Kospi fell 0.85%, and Australia's S&P/ASX 200 edged 0.42% lower. Hong Kong's Hang Seng Index posted a modest gain of 0.7%, while mainland China's CSI 300 traded flat.
U.S. Markets Surge Despite Venezuela Shock
The divergent session in Asia builds on a surprisingly robust performance in U.S. markets overnight. Major indices rallied even as the Venezuela operation unfolded, with the Dow Jones Industrial Average surging 1.23% to close at a new all-time high. The S&P 500 and Nasdaq Composite also posted solid gains.
The market's resilience suggests that investors, for now, are betting the event will remain contained rather than escalate into a broader conflict. This sentiment was supported by a concurrent rise in crude oil prices, which added a risk premium but did not trigger a wider flight from risk assets. U.S. equity futures were little changed in early Asian hours, indicating a pause in the momentum.
A Cautious Stance on Lingering Uncertainty
The mixed opening across Asia underscores a market in a holding pattern, weighing strong corporate fundamentals and record highs against an unpredictable geopolitical landscape. Traders appear to be adopting a selective approach, favoring markets like Japan with clear domestic catalysts while showing restraint in others as they await further clarity on the international implications of the weekend's events.