Filippo Gori, co-head of global banking at JPMorgan, said on ThursdayamericanabingoIndia and Japan are the highlights of Asia's "very attractive" equity and M & A markets. "Japan is very hot and demand is very strong in India," Gori said.
Japan's Nikkei 225 index and India's Nifty 50 index have risen nearly 26% in the past year, LSEG data shows.
According to a Bain report, although global M & A activity declined in 2023, the value of transactions in Japan increased 23% year-on-year to approximately US$123 billion. "The Japanese economy is in a unique favorable position for M & A growth," the report said.
Analysts at Bain said sentiment in the Indian market is optimistic, with most deal makers expecting improvement in 2024.
Deloitte's India M & A Trends report shows that the value of M & A transactions in India last year was US$136 billion, down 27% year-on-year, which is consistent with the downward trend in global M & A activity. "Continued confidence in India by businesses and investors may pave the way for a recovery in the value of transactions in the country," the report said.
Countries such as India and Japan have also benefited from geopolitical tensions.
Companies seeking to expand their manufacturing footprint in India will drive M & A activity in the country.
American technology giant Apple (AAPL)americanabingo.US) has moved some production to India, where it is reported that about 14% of iPhones are currently produced.
Trading activity may be concentrated in the field of artificial intelligence. JPMorgan's Gori said artificial intelligence could add trillions of dollars to the global economy by 2030. PricewaterhouseCoopers said that by 2030, artificial intelligence will contribute US$15.7 trillion to the global economy.
"So people are very interested in this," Gori said. As for whether it will drive trading activity in the region, I think we need to observe certain dynamics. Geopolitics may play a role in this."
He added: "Healthcare and renewable energy will definitely drive a lot of activity."
