Asia Stocks Surge and Oil Retreats as US Confirms Capture of Venezuelan President
Tokyo, Monday, 5 January 2026.
Japanese equities breached the historic 50,000 level and oil prices eased as traders reacted to the US military’s capture of Nicolas Maduro, anticipating stabilized energy flows under temporary American administration.
Defense Sector Leads Broad Asian Rally
While the headline surge in Tokyo captured initial attention, the rally was broad-based and sector-specific. Japan’s Topix index climbed 1.42% to a record high, while South Korea’s Kospi rose 2.41% to reach a new peak of 4,420.92 [1]. Notably, investors flocked to defense equities, anticipating that the U.S. military’s assertive posture might signal further engagements or heightened global security spending. Mitsubishi Heavy Industries and Kawasaki Heavy Industries saw gains of 6.4% and 5.7% respectively, while South Korean defense giant Hanwha Aerospace jumped as much as 4% [1]. Safe-haven assets also saw inflows, with spot gold advancing more than 1% to $4,383.99 [1].
Operation Absolute Resolve: Tactical Details
These market movements are a direct response to the confirmation of “Operation Absolute Resolve,” the U.S. military mission that extracted the Venezuelan leadership over the weekend. As reported in our previous coverage, this marks a pivotal shift in U.S. foreign policy, moving from sanctions to direct intervention. New details released by the Pentagon indicate the scale of the operation was immense, involving over 150 aircraft launched from 20 bases across the Western Hemisphere [2][6]. The mission was authorized by President Trump at 22:46 EST on Friday, January 2, with forces breaching Maduro’s compound hours later under the cover of darkness [2].
Rapid Extraction and Legal Ramifications
The extraction was characterized by overwhelming speed and precision. General Dan Caine, Chairman of the Joint Chiefs of Staff, noted that U.S. forces achieved total surprise, entering the residence at 01:01 EST on Saturday [2]. Despite Maduro’s attempt to reach a fortified “safe room” lined with steel, he and First Lady Cilia Flores were apprehended and exfiltrated by 03:29 EST [2][6]. The couple has since been transported to the Metropolitan Detention Center in Brooklyn, New York, where they face narco-terrorism conspiracy charges alleged to have enriched Venezuela’s military elite [1][3].
Strategic Pivot to Energy Governance
Beyond the tactical success, the administration has outlined a controversial economic roadmap for the interim period. President Trump declared that the U.S. intends to “run” Venezuela temporarily, explicitly linking the governance strategy to the nation’s vast natural resources [3]. With Venezuela possessing 303 billion barrels of proven oil reserves—approximately 17% of the global supply—the White House plans to deploy major U.S. oil companies to rebuild the sector [1][7]. “We’re going to get reimbursed for everything that we spend,” Trump stated, asserting that the influx of American expertise would stabilize global energy markets [7].
Political Polarization and International Fallout
The operation has drawn sharp lines in Washington. While Defense Secretary Pete Hegseth heralded the mission as proof that “America is back,” Democratic lawmakers have raised constitutional alarms [4][7]. Senator Andy Kim and Representative Rashida Tlaib condemned the action as a violation of international law, with calls for Congress to reconvene to address the lack of legislative oversight [4]. Meanwhile, on the ground in Caracas, the political vacuum remains acute, though the U.S. has signaled it is prepared to maintain a presence to ensure a “judicious transition” [3].