Asian shares and US futures advanced on Tuesday after stocks closed higher on Wall Street. Oil prices fell back after gaining on Monday following the capture by US forces of Venezuelan President Nicolás Maduro in a weekend raid. In Tokyo, the Nikkei 225 gained 1.1 per cent to 52,389.63 on strong buying of tech-related shares like precision tools maker Disco Corp, which jumped 5.3 per cent. South Korea’s Kospi pushed further into record territory, gaining 0.8 per cent to 4,495.49, buoyed by gains for automak ...

Core Insights - The capture of Venezuelan President Nicolas Maduro following US airstrikes is a significant geopolitical event, but the global oil market is expected to remain stable in response [1]. Oil Infrastructure and Production - Venezuela's oil infrastructure remains intact after US attacks, with key facilities such as Jose port and the Amuay refinery still operational [2]. - Venezuela's oil production has drastically declined over the past two decades, now accounting for less than 1% of global oil supplies [3]. Market Dynamics - The International Energy Agency forecasts that global oil supplies will exceed demand by 3.8 million barrels per day by 2026, indicating a potential oversupply situation [4]. - Recent crude prices have dropped to around $60 per barrel, with expectations of only a marginal increase of 1-2 US dollars following the geopolitical developments [5]. OPEC and Production Strategy - OPEC, which includes Venezuela, is expected to maintain its planned pause on production increases during an upcoming meeting, despite the geopolitical tensions [5]. Impact on Shipping and Operations - Recent US actions have caused disruptions in shipping, with at least seven vessels reversing course or halting at sea due to fears of sanctions [6]. - Chevron Corp. continues to operate in Venezuela under a sanctions waiver, indicating some resilience in the face of geopolitical volatility [7].

Market Overview - Japan's Nikkei index fell by 2.2% or 1061 points to 47,027 after a national holiday [2][4] - The Hang Seng index in Hong Kong decreased by 0.1% to 25,839, while Shanghai's Composite index increased by 0.2% to 3,897.56 [2][4] - South Korea's Kospi index saw a slight increase of 0.02% to 3,585 [2][4] U.S.-China Relations - President Trump reassured that the U.S. wants to help China, stating that Xi Jinping "doesn't want Depression for his country" [2][4] - Trump's comments followed a turbulent week for markets, including his criticism of China and threats of higher tariffs [2][4] - Despite tough rhetoric, Trump indicated a potential meeting with Xi Jinping later this month, leaving trade talks uncertain [2][4] Stock Performance - Broadcom experienced a significant gain of 9.9% after announcing a partnership with OpenAI to develop AI accelerators for ChatGPT [3][4] - Fastenal reported a 7.5% drop, marking the largest loss in the S&P 500 due to slightly weaker-than-expected quarterly profits [3][4] - Investors are focusing on the upcoming earnings season, with major companies like JPMorgan Chase, Johnson & Johnson, and United Airlines set to report [3][4] Commodities and Currency - U.S. crude oil prices increased by 20 cents to $59.69 per barrel, while Brent crude rose by 21 cents to $63.53 per barrel [3][4] - In currency markets, the dollar fell to 152.13 Japanese yen from 152.29 yen, while the euro strengthened to $1.1581 from $1.1569 [3][4]