Asia markets see ‘unbelievable’ rush of capital amid equity and IPO frenzy

Asian stock markets are attracting global investors with a surge in IPOs, increasing cross-border flows and accelerating deal activity, according to senior executives at JPMorgan and Goldman Sachs; This underlines the region’s growing importance in global capital markets.

“It’s amazing what kind of activity we’re seeing [in Asia]A significant portion of last year’s IPO volumes came from the region, JPMorgan’s Asia Pacific CEO Sjoerd Leenart added on CNBC’s “Access Middle East” program on Monday. IPO proceeds in Asia Pacific also more than doubled last year, according to EY data; Seven of the top 10 global deals took place in the region.

“We see this [activity] In the M&A markets… but also in the equity markets, and it’s actually quite common,” Leenart said.

The strong inflows at the start of the year follow a strong 2025, with many Asian stock indexes outperforming the US.

The MSCI AC Asia Pacific index, which tracks more than 1,000 large- and mid-cap stocks across 13 regional markets, has broken multiple records this year, with gains of over 25% in 2025. Japan’s benchmark Nikkei 225 and South Korea’s Kospi have also reached all-time highs in recent days.

According to Goldman Sachs data, while foreign inflows to South Korean markets remained healthy, Korea-focused investment funds recorded a net inflow of approximately $1.3 billion this year as of mid-January.

Similarly, daily turnover on China’s Shanghai, Shenzhen and Beijing stock exchanges hit a record high this month, prompting regulators to tighten margin financing rules.

in 2025 Asia-Pacific it was Largest region by IPO revenuesAccording to a recent study by EY. The region saw a 106% increase in revenues compared to 2024; India remained the world’s most active listing destination by deal count.

“China and Hong Kong have been a big part of this. It’s great to see market confidence returning,” Leenart said.

“I think this positive trend in 2025 will also emerge in 2026,” Leenart added. “The Chinese are doing everything to keep stimulating the economy, and people are betting on it.”

The resurgence of interest in Asia comes as investors reassess how businesses and markets operate amid ongoing geopolitical uncertainty. Kevin Sneader, former Japan head of APAC at Goldman Sachs, told CNBC that markets are becoming more adept at moving through volatility rather than waiting for it to pass.

“China, India, Japan, Korea. It attracts a lot of attention from international investors,” he said.

“It’s fair to say there’s a lot of renewed interest in Asia and renewed interest in China. Some of that has come from resilience and really the impressive development of technology in that part of the world,” Sneader said, emphasizing that South Korean markets and semiconductor companies are the main beneficiaries. he said.

Technology firms Samsung Electronics and SK Hynix together account for more than 30% of the entire Kospi index, data from Yuanta Securities showed. SK Hynix is ​​up 274% in 2025, according to LSEG data, and is up 20% so far this year. Samsung Electronics skyrocketed by 125% last year and is up 30% to date.

Goldman Sachs expects Chinese stocks to rise about 20% this year. It also raised its 12-month target for TAIEX in Taiwan from 32,400 to 34,600; This marks an 8% increase, pointing to stronger-than-expected earnings growth as AI demand boosts the outlook and investment plans of TSMC, the world’s largest chipmaker.

Goldman said rising capital spending at TSMC and a continued contraction in advanced chips had boosted profit forecasts across Taiwan’s broader semiconductor and hardware supply chain.

Late Monday, President Donald Trump said he was increasing tariffs on imports of cars, pharmaceuticals and lumber from South Korea from 15% to 25% because of a delay in the country’s legislature approving last summer’s trade deal with the United States.

While some auto stocks fell, South Korea’s Kospi shares were trading up 0.6%.

“Tariffs are a part of life. I think business leaders are learning to live with tariffs and understanding that,” Sneader said the day before. he said. “What really matters in this context is how their business is performing and how you factor that into the decision-making process for investors.”

— CNBC’s Emily Tan contributed to this story.