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Investors assess Venezuela implications as they watch oil prices and stocks rise.

Investors weighed the implications of U.S. military intervention in Venezuela as they prepared for the week's worth of economic data releases that will be released in the first trading week of 2019.

S&P 500 futures rose 0.1%, while MSCI's broadest Asia-Pacific index outside Japan gained 1.2%.

Investors are assessing what the impact of the dramatic events of the past weekend, in which the U.S. captured Venezuelan President Nicolas Maduro. On Saturday, President Donald Trump announced that he would temporarily take Venezuela under American control.

Neil Shearing is the group chief economist at Capital Economics. He said that the removal of Venezuelan President Nicolas Maduro from office by the U.S. will not have any significant economic effects on the global economy in the near future. "But its geopolitical and political ramifications are likely to reverberate," said Neil Shearing, group chief?economist at Capital Economics.

Brent crude futures rose 0.2% to $60.87 as oil markets assessed?the impact?of the U.S. intervening in Venezuela and a Sunday vote by OPEC+ to maintain oil production at the same level.

"A bearish story on oil prices is highly unlikely." Venezuela will need capital and engineering help to reach its'maximum production, which wasn't that impressive at the start," said Marko papic, chief strategy at BCA Research, Los Angeles.

Papic said, "We do not consider ourselves to be sellers of oil at this time and in fact we think that there could be upside risks."

The Nikkei225, a regional stock market, climbed 2.8% and is now near the record high set two months ago. The Japanese stock market continued to rise as the data revealed that manufacturing activity in December stabilised, ending a 5-month-long decline.

Seoul's Kospi?and Taiwan?each climbed more than 2 % to reach new record highs.

The Chinese markets were muted. The Hang Seng Index rose 0.1%. Chinese oil companies weighed down the index, which is a measure of Hong Kong-listed energy shares. Australian shares rose 0.1%.

Vasu Menon is the managing director of OCBC's investment strategy in Singapore.

He said: "Strategic calculations are taking place against the backdrop a midterm election year and developments are unpredictable." This uncertainty could support oil prices. "A more volatile geopolitical climate may boost haven assets such as precious metals."

The U.S. dollar index, which measures greenback strength against a basket six currencies, rose 0.1% to 98.55 at the end of last day, continuing recent gains for a fifth straight day.

The yield of the 10-year Treasury Bond in the United States was up 0.2 basis point at 4.187%.

Gold rose 1%, trading at $4371.29.

Bitcoin rose 0.2% to $91,452.90 while ether remained flat at $3.141.29. (Reporting and editing by Gregor Stuart Hunter, Muralikumar Anathharaman, and Shri Navaratnam).

(source: Reuters)