Defense stocks drive Asia markets to record highs after U.S. captures Venezuela’s Maduro

Asia-Pacific markets began the first full trading week of 2026 on a stronger note after the U.S. said it had attacked Venezuela and captured President Nicolas Maduro over the weekend. Oil prices edged lower as markets weighed the potential impact of geopolitical tensions.

U.S. authorities said Maduro and his wife, Cilia Flores, were flown to New York following the operation and charged with narco-terrorism conspiracy and other crimes. An indictment said drug trafficking had "enriched and entrenched Venezuela's political and military elite."

Oil prices fell after the escalation involving the oil-rich nation. Brent crude futures slipped more than 1% earlier before paring losses, and were last trading 0.3% lower at $60.57, while the West Texas Intermediate crude prices fell 0.4% to $57.09 per barrel.

Venezuela, a founding member of OPEC, holds the largest proven crude oil reserves in the world, at 303 billion barrels, or about 17% of the global total, according to the U.S. Energy Information Administration.

Spot gold prices advanced more than 1.8% to $4,409.29.

Japan's benchmark Nikkei 225 index jumped 3.13% in its first trading session of the year, while the Topix index added 2.12% to hit a record high. Defense stocks were among the top gainers on the index, with IHI Corp surging nearly 10%, while Mitsubishi Heavy Industries and Kawasaki Heavy Industries added 9.17% and 6.89%, respectively.

South Korea's Kospi index extended gains, climbing 3.15% to a new all-time high of 4,448.52, after hitting a fresh record earlier. The small-cap Kosdaq added 1.11%.

Index heavyweight Samsung Electronics surged more than 7%, after co-CEO TM Roh told Reuters Monday that the company planned to double the number of its mobile devices with AI features powered by Google's Gemini this year.

Shares of South Korean defense giant Hanwha Aerospace jumped more than 6%, while Poongsan, a manufacturer of defense-related products, traded 2% higher.

Australia's ASX/S&P 200 was flat.

Hong Kong's Hang Seng Index ticked slightly below the flatline, dragged by energy stocks, while the mainland CSI 300 rose 1.29%. Shares of China's biggest energy firm, PetroChina, were the biggest losers on the Hong Kong index, tumbling 4.81%. CNOOC, the largest producer of offshore crude oil and natural gas in China, fell 3.93%.

India's Nifty 50 was up 0.13% and the BSE Sensex index was flat.

U.S. equity futures were steady in early Asian hours.

On Friday stateside, the first trading day of 2026, the S&P 500 closed slightly higher as gains in semiconductor names kept the index afloat.

The benchmark closed up 0.19% at 6,858.47, while the Nasdaq Composite fell 0.03% to finish at 23,235.63. The two had been solidly positive earlier in the day, with the S&P 500 and the tech-heavy Nasdaq trading higher by 0.7% and 1.5% at their peaks, respectively.

The Dow Jones Industrial Average moved up 319.10 points, or 0.66%, to settle at 48,382.39.

— CNBC's Liz Napolitano, Fred Imbert and Sean Conlon contributed to this report.