Singapore: Global financial markets were largely steady on Monday as investors weighed rising geopolitical tensions against expectations for key economic data in the days ahead.
Stocks in Asia edged higher, led by gains in Japan and South Korea, as investors looked past fresh political uncertainty and focused on corporate earnings and policy signals. Markets in China lagged behind the region, with energy shares under pressure and investor sentiment dampened by signs of slower growth.
The cautious mood followed strong international reactions to recent developments in Venezuela, which have raised concerns about energy supply stability and wider geopolitical fallout. Oil prices moved in a narrow and volatile range as traders assessed the potential impact on global crude flows and awaited guidance from OPEC Plus producers.
Safe haven assets saw renewed interest. Gold prices firmed as some investors sought protection against uncertainty, while the US dollar held its ground and Treasury yields inched higher. Digital assets also traded slightly higher, reflecting selective risk appetite rather than broad optimism.
Market attention is also turning to economic data from major economies. In China, recent indicators showed the services sector growing at its slowest pace in six months, highlighting continued weakness in domestic demand despite government efforts to support growth through infrastructure spending and investment approvals.
In the United States, investors are watching for signals on interest rate policy and inflation trends, which are expected to shape market direction in the opening weeks of the new year. Analysts say markets remain resilient but sensitive to sudden political or economic shocks.
Overall, global markets began 2026 with cautious stability, balancing hopes for economic recovery against persistent geopolitical and policy uncertainties.