Asian equity markets are experiencing a notable surge in interest from global investors, driven by a wave of initial public offerings (IPOs), increased cross-border capital flows, and heightened merger and acquisition (M&A) activities. Senior executives from JPMorgan and Goldman Sachs have emphasized the region’s growing prominence in the global capital markets.
Sjoerd Leenart, CEO of JPMorgan’s Asia Pacific division, stated on a recent CNBC segment, “It’s unbelievable what activity we’re seeing in Asia.” He pointed out that a significant portion of IPO volumes last year originated from this region. According to data from EY, IPO proceeds in the Asia Pacific more than doubled in 2025, with seven out of the top ten global deals taking place there.
Leenart noted the widespread activity across both M&A and equity markets. The robust inflows into Asian markets at the beginning of the year follow a successful 2025 in which several Asian equity benchmarks outperformed their U.S. counterparts. The MSCI AC Asia Pacific index, which tracks more than 1,000 large- and mid-cap stocks across 13 markets, has achieved multiple record highs this year, registering over a 25% gain in 2025. Additionally, Japan’s Nikkei 225 and South Korea’s Kospi recently reached all-time highs.
Goldman Sachs reported healthy foreign inflows into South Korean markets, with Korea-focused mutual funds recording approximately $1.3 billion in net inflows in early 2026. Meanwhile, activity on China’s stock exchanges—Shanghai, Shenzhen, and Beijing—has seen daily turnover reach unprecedented levels this month, prompting regulatory authorities to tighten margin financing rules.
In a recent EY report, the Asia Pacific region emerged as the largest area for IPO proceeds, experiencing a 106% increase compared to the previous year, with India being the leading destination for active listings by deal count. Leenart commented on the role of China and Hong Kong in this growth, stating, “It’s fantastic to see the market confidence coming back.” He believes the positive momentum seen in 2025 will likely continue into 2026 owing to concerted efforts by China to stimulate its economy.
This renewed investment interest in Asia comes against the backdrop of ongoing geopolitical uncertainties, prompting investors to re-evaluate market dynamics. Kevin Sneader, President of Goldman Sachs’ APAC region excluding Japan, remarked that markets are becoming more adept at navigating volatility rather than waiting for calm periods.
He emphasized renewed interest in China, India, Japan, and Korea, crediting this to resilience and significant advancements in technology. Notably, South Korean technology giants like Samsung Electronics and SK Hynix have been singled out as critical beneficiaries of this trend, with SK Hynix’s stock soaring 274% in 2025 and continuing to rise in the following year. Together, these firms constituting over 30% of the Kospi index underscore the strategic importance of technology in Southeast Asia’s market landscape.
Goldman Sachs has projected a 20% increase in Chinese equities for this year and has raised its 12-month target for Taiwan’s TAIEX index to 34,600, positing an 8% potential upside. This adjustment is attributed to stronger-than-expected earnings growth driven by AI demand, particularly benefiting TSMC, the world’s largest chipmaker. The firm noted that rising capital investment at TSMC and maintained shortages in advanced chips are bolstering profit forecasts across Taiwan’s semiconductor sector.
However, mixed market reactions were noted in response to President Trump’s announcement of increased tariffs on imported autos, pharmaceuticals, and lumber from South Korea, raising tariffs from 15% to 25%. Although some auto stocks experienced declines, the overall trajectory of the South Korean Kospi was a 0.6% increase.
In this complex environment, Sneader emphasized that amidst tariff uncertainties, business performance remains pivotal for leaders and investors alike as they adapt their decision-making processes.
