India and Japan Capture JPMorgan’s Interest from Promising Equity and M&A Markets

During JPMorgan’s Global China Summit, co-head of global banking Filippo Gori highlighted India and Japan as standout performers in Asia’s vibrant equity and deal-making landscape, and emphasized the strong demand for investments in Japan and India, referring to them as “bright spots” in the region.

Both Japan’s Nikkei 225 stock index and India’s Nifty 50 have seen significant growth of nearly 26% over the past year, according to data from LSEG. Despite a global decline in mergers and acquisitions (M&A) activity, Japan experienced a 23% rise in deal value to around $123 billion in 2023, as reported by Bain & Company.

In India, although M&A deal value dropped by 27% to $136 billion last year, there is optimism among dealmakers for an improvement in 2024. Deloitte’s India M&A trends report suggested that continued confidence from businesses and investors could lead to a recovery in deal values in the country.

Countries like India and Japan have been capitalizing on the “China Plus One” strategy, attracting investors seeking alternative destinations amidst escalating U.S.-China tensions. India, in particular, is projected to experience increased M&A activity, driven by companies expanding their manufacturing presence in the country.

The shift towards AI technology is expected to shape future dealmaking activities, with Gori noting the potential for artificial intelligence to significantly boost the global economy by 2030, while sectors such as healthcare and renewables are forecasted to play a pivotal role in driving deal activity.

Gori highlighted the evolving dynamics in the region and noted that geopolitical factors could influence dealmaking activities in the coming years.