Speaking on Asia’s stock and deal-making landscape, JPMorgan’s Filippo Gori stated at the bank’s Global China Summit on Thursday that India and Japan are two bright spots in Asia’s “supremely interesting” markets.

“You have the burning country of Japan. India, which is in great demand, according to Gori, JPMorgan’s co-head of global banking.

Based on LSEG statistics, the Nikkei 225 stock index in Japan and the Nifty 50 stock index in India have both increased by around 26% in the last year.

According to Bain & Company’s Japan M&A report, while mergers and acquisitions activity decreased globally in 2023, transaction value in Japan increased by 23% year over year to around $123 billion. The analysis stated that Japan’s economy is particularly well-positioned for M&A expansion.

According to researchers at Bain & Company, the Indian market was in a positive mood, with the majority of dealmakers projecting recovery by 2024.

According to Deloitte’s India M&A trends report, the value of M&A deals in India last year was $136 billion, a 27% decrease from the previous year. This dip was consistent with a global downturn in M&A activity. The research stated that “a recovery in deal values in India could be facilitated by sustained business and investor confidence in the country.”

The “China Plus One” policy has also benefited nations like Japan and India, as investors seek out other countries in the region to deposit their money in the face of intensifying tensions between the United States and China.

The China Plus One reconfiguration of global supply chains and supportive government policies, like the Production Linked Incentive scheme that encourages manufacturing in India, are the main drivers of merger and acquisition activity in the country, according to Deloitte, which is led by companies looking to increase their manufacturing footprint in the nation.

After strict Covid restrictions in China interrupted its operations, the world’s largest tech company, Apple, moved some of its manufacture to India. It is estimated that 14% of its iPhones are currently built in India.

The AI industry might be the target of dealmaking activity: According to Gori, by 2030, artificial intelligence might boost the world economy by trillions of dollars. AI may boost the world economy by up to $15.7 trillion by 2030, according to PwC.

“So there is a lot of interest. Whether it will drive much dealmaking activity in this part of the world, I think we need to see certain dynamics. Geopolitics could play a role into that so I think it’s a little bit too early to say,” Gori said.

“Healthcare for sure and renewables for sure will drive a lot of activity,” he added.

(Adapted from FastBull.com)

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