Morning brief: Asian stocks hit records as Venezuela's acting president swears in

Asian markets extended a record-breaking rally on Tuesday, taking cues from Wall Street’s latest highs, even as investors digested geopolitical shocks linked to Venezuela and fresh developments from Nvidia in autonomous driving.

The day’s trading reflected a market largely driven by momentum and macroeconomic expectations, with limited spillover so far from rising political risk in Latin America.

Asian markets ride Wall Street momentum

Asian equities climbed to new peaks after the Dow Jones Industrial Average hit an all-time high overnight, supported by gains in US oil majors and financial stocks.

MSCI’s broadest index of Asia-Pacific shares rose 1.1% to its highest-ever level, led by Japanese equities.

Japan’s Topix index jumped 1.5% to a record, while Hong Kong’s Hang Seng added 1.6%, mainland China’s CSI300 gained 1.16%, and Australia’s benchmark rose 1%.

South Korea’s KOSPI gained 0.8%.

US S&P 500 futures edged up 0.14% following a 0.6% gain in the cash session, with Chevron shares surging more than 5%.

Despite heightened geopolitical headlines, analysts said risk sentiment remained resilient.

“Venezuela’s relatively small economy seems to have convinced investors that global markets are unlikely to be directly affected,” wrote Yusuke Matsuo, senior market economist at Mizuho Securities.

Currencies were steady ahead of Friday’s US employment report, a key input for expectations around Federal Reserve policy.

The dollar hovered near ¥156.37 and €1.1724, while the dollar index eased slightly to 98.23.

Traders currently expect two Fed rate cuts this year, according to LSEG data.

Oil prices eased after a sharp overnight rise triggered by a US military operation that captured Venezuelan President Nicolás Maduro.

Brent crude slipped 17 cents to $61.59 a barrel, while US West Texas Intermediate fell 22 cents to $58.10.

Traders assessed the longer-term implications for Venezuelan oil flows, noting that any material increase in production would take years.

Precious metals remained near record levels.

Gold held around $4,449 an ounce, less than $100 from last month’s peak, while copper hit record highs in London and Shanghai amid supply concerns following a strike at a Chilean mine.

Venezuela’s new regime tightens grip

In Caracas, Venezuela’s government moved quickly to reassert control after Maduro’s capture by US forces and his transfer to New York, where he has pleaded not guilty to narco-terrorism charges.

Delcy Rodríguez was sworn in as acting president, backed by ruling party institutions and, notably, US President Donald Trump, who has said she would work with Washington.

Security forces and pro-government colectivos were seen patrolling the capital, and at least seven journalists were detained, according to press unions.

The Supreme Tribunal of Justice classified Maduro’s removal as a temporary forced absence, allowing Rodríguez to exercise executive authority for up to 90 days, with a possible extension that could delay elections until mid-year.

Nvidia outlines robotaxi ambitions

Nvidia said it is working with robotaxi operators to deploy fleets powered by its AI chips and Drive AV software as early as 2027.

The company is targeting “Level 4” autonomy in defined regions and sees robotics, including self-driving cars, as its second most important growth area after AI infrastructure.

Automotive and robotics chips accounted for about 1% of Nvidia’s revenue in the quarter ended in October, but partnerships with companies such as Uber and Mercedes-Benz signal longer-term ambitions.

Nvidia demonstrated a self-driving Mercedes-Benz vehicle in San Francisco, showcasing gradual advances toward higher autonomy.

Trump lays out plans for Venezuela

In Washington, the White House announced that Secretary of State Marco Rubio will lead US efforts to implement economic and political reforms in Venezuela under President Trump’s direction.

Senior adviser Stephen Miller said the US was receiving “full, complete and total” cooperation from Caracas, though details of the administration plan remain scarce.

Trump has said the US would temporarily “run” Venezuela until elections are held and suggested major oil companies could invest billions to rebuild its energy sector.

The United Nations Security Council convened an emergency meeting to discuss the operation, with several countries voicing concern over respect for international law.