JPMorgan’s Filippo Gori told the bank’s Global China Summit on Thursday that India and Japan are two bright spots in Asia’s “extremely interesting” markets, pointing to the region’s equities and trading prospects .
“Japan is booming. The demand in India is also very big,” Gorey, co-head of global banking at JPMorgan Chase, told CNBC.
Japan’s Nikkei 225 Index stock index and indian stock index nifty 50 The company’s shares have risen nearly 26% in the past year, according to LSEG.
Bain & Company said in the report that although global M&A activity declined in 2023, the value of Japan’s transactions increased by 23% year-on-year to approximately US$123 billion. Japan M&A Report. “The Japanese economy is uniquely positioned for M&A growth,” the report states.
Indian market sentiment bullishBain & Company analysts said most dealmakers expect improvements in 2024.
The value of M&A transactions in India last year was $136 billion, down 27% from the previous year, according to Deloitte, in line with a decline in global M&A activity. India M&A Trend Report. “Sustained business and investor confidence in India could pave the way for a recovery in transaction values in the country,” the report said.
Countries such as India and Japan have also benefited from the “China plus one” strategy as investors redirect funds elsewhere in the region as tensions between China and the United States escalate.
Companies looking to expand their manufacturing operations in India will drive M&A activity in the country: “This can be attributed to the China-plus-one restructuring of global supply chains and favorable government policies such as production linked incentives Plans to boost manufacturing in India,” Deloitte said.
US technology giant Apple has shifted some production to India after China’s strict COVID-19 controls disrupted its operations in the country. According to reports, about 14% of the company’s iPhones are currently made in India.
Deal activity is likely to focus on artificial intelligence: Gorey said artificial intelligence has the potential to add trillions of dollars to the global economy by 2030. PwC says artificial intelligence could contribute up to $15.7 trillion The global economy in 2030.
“So there’s a lot of interest in that. Whether it’s going to drive a lot of deal activity in this part of the world, I think we need to see some dynamics. Geopolitics may play a role in that, so I think it’s too early to tell right now. It’s too early,” Gorey said.
“Healthcare and renewable energy will certainly drive a lot of activity,” he added.
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