Portugal Colonial - Markets extend global rally amid optimistic outlook, oil dips

Attention is also turning back to US monetary policy and the release of key data this week that could play a role in Federal Reserve interest rate decision-making ahead of its next meeting at the end of the month.

Traders essentially ignored the noise of the surprise US raid on Caracas on Saturday that saw Maduro and his wife spirited away to New York to face drug charges.

While there is still some nervousness about stretched valuations in the tech sector, analysts remain optimistic about the outlook for equities this year, with artificial intelligence still the main game in town.

"Global equities are likely to keep looking through the geopolitical shock unless it threatens the broader supply chain or tightens financial conditions, because geopolitics has become a persistent feature rather than a surprise," Charu Chanana, chief investment strategist at Saxo Markets, wrote in a commentary.

"Equities can continue grinding higher if earnings expectations, liquidity, and rate expectations remain supportive, especially in tech."

That mood was reflected on Wall Street, where the Dow ended at a new record, boosted by a rally in tech giants including Amazon and Meta as well as energy giants.

The S&P 500 and Nasdaq also rose, helped by data showing US manufacturing activity contracted for a 10th straight month in December, giving the Fed fresh room to cut rates.

The figures come ahead of jobs data due over the next couple of days, which could give it more justification to ease, even after the central bank suggested last month it could pause its easing.

Hong Kong piled on more than one percent, while Tokyo, Shanghai, Singapore, Wellington, Taipei, Manila and Jakarta were also sharply higher.

Seoul dipped, having soared more than three percent Monday.

South Korean car giant Hyundai was higher but gave up its early surge of more than eight percent that came after it unveiled a prototype of its humanoid robot called Atlas at the Consumer Electronics Show in Las Vegas. The firm said the AI-powered device would start working at a US plant by 2028.

Sydney also dipped despite Australia's BlueScope Steel rocketing more than 20 percent after saying it is evaluating a US$8.8 billion joint takeover bid by a US rival and a diversified local firm.

Oil prices slipped, having risen 1.7 percent Monday as the impact of developments in Venezuela were being weighed.

While the country sits on about a fifth of the world's oil reserves, adding to an existing supply glut, observers pointed out that a quick ramp-up of output would be hamstrung by several issues including its creaking infrastructure, low prices and political uncertainty.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: UP 0.7 percent at 52,191.58 (break)

Hong Kong - Hang Seng Index: UP 1.5 percent at 26,744.09

Shanghai - Composite: UP 0.9 percent at 4,060.24

West Texas Intermediate: DOWN 0.5 percent at $58.01 per barrel

Brent North Sea Crude: DOWN 0.4 percent at $61.49 per barrel

Euro/dollar: UP at $1.1723 from $1.1714 on Monday

Pound/dollar: UP at $1.3545 from $1.3525

Dollar/yen: UP at 156.45 yen from 156.31 yen

Euro/pound: DOWN at 86.55 pence from 86.57 pence

New York - Dow: UP 1.2 percent at 48,977.18 (close)

London - FTSE 100: UP 0.5 percent at 10,004.57 (close)

G.Teles--PC