Global markets advance on upbeat outlook as oil prices ease

January 06, 2026 / 10:59 AM

Sharjah24 - AFP: Most Asian markets advanced on Tuesday, extending a global rally after Wall Street posted its first record of the year, driven largely by continued enthusiasm for AI-linked technology stocks. Investor sentiment remained upbeat despite lingering concerns over lofty tech valuations.

Focus returns to US monetary policy

Attention has shifted back to US monetary policy as traders await a series of key economic data releases this week that could influence the Federal Reserve ahead of its policy meeting later this month. Signs of weakening US manufacturing have strengthened expectations that the central bank may have room to cut interest rates.

Geopolitical shock largely ignored

Markets appeared to shrug off the surprise US raid on Caracas that led to the removal of Venezuelan President Nicolas Maduro. Analysts said global equities are likely to look past geopolitical shocks unless they disrupt supply chains or tighten financial conditions, with artificial intelligence continuing to anchor investor confidence.

Wall Street sets the tone

That optimism was reflected on Wall Street, where the Dow Jones Industrial Average closed at a fresh record, buoyed by gains in major tech and energy stocks. The S&P 500 and Nasdaq also climbed, supported by data showing US manufacturing contracted for a tenth consecutive month, reinforcing bets on policy easing.

Asia-Pacific markets mixed but mostly higher

Across the region, Hong Kong surged more than one percent, while Tokyo, Shanghai, Singapore, Wellington, Taipei, Manila, and Jakarta also posted solid gains. Seoul edged lower after a sharp rise the previous session. In Australia, Sydney dipped despite a sharp jump in BlueScope Steel shares following takeover interest. Shares of South Korea’s Hyundai pared early gains after unveiling an AI-powered humanoid robot at CES in Las Vegas.

Oil prices edge lower

Oil prices slipped after Monday’s sharp rise, as markets weighed developments in Venezuela against an already ample global supply. Despite the country holding vast oil reserves, analysts noted that ageing infrastructure, low prices, and political uncertainty could limit any rapid increase in output.

Market snapshot

At around 0230 GMT, Tokyo’s Nikkei 225 was up 0.7 percent, Hong Kong’s Hang Seng rose 1.5 percent, and Shanghai’s Composite gained 0.9 percent, while West Texas Intermediate fell 0.5 percent to $58.01 a barrel and Brent crude slipped 0.4 percent to $61.49; in currencies, the euro and pound strengthened against the dollar, the yen weakened slightly, and in late trading New York’s Dow closed up 1.2 percent while London’s FTSE 100 ended 0.5 percent higher.