The Asia-Pacific (APAC) deal volume dipped by around 12% year-on-year (YoY) during January-May 2026 as resilient venture capital (VC) activity clashed with a heavy mergers & acquisitions (M&A) retreat. While macro caution dragged M&A and private equity (PE), the surge in VC financing signal underlying appetite for innovation, reveals GlobalData, a leading intelligence and productivity platform.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The decline reflects a softer regional dealmaking environment amid pronounced weakness in M&A and private equity deal activity. While venture financing posted an increase, it was not sufficient to offset sharp contractions in the other deal types, underscoring a cautious approach.”
An analysis of GlobalData’s Financial Deals Database reveals that M&A (which accounts for around half of the total deal volume) was the principal drag on overall momentum from a deal-type perspective. The total number of M&A deals announced in the APAC region YoY fell by around 25% during January-May 2026. The decline points to continued boardroom caution around transactions, as buyers prioritize balance-sheet discipline and integration clarity before committing to acquisitions.
Private equity also weakened with deal volume contracting by 28% YoY. Meanwhile, venture financing emerged as a relative bright spot with the total number of VC deals announced in the region up by 6% YoY.
A market-level view shows an increasingly uneven regional landscape. China recorded an 11% YoY increase in deal volume during January-May 2026, standing out as a major stabilizing force. The pickup indicates improving deal flow in targeted segments and a comparatively steadier pipeline of transactions. India edged up by 1% YoY, signaling resilience rather than acceleration.
In contrast, several other key markets posted steep declines indicating broader regional caution. Japan saw a 41% YoY fall, representing the sharpest pullback among the largest APAC markets. Australia, South Korea, Singapore saw their respective deal volumes fall by 20%, 23%, 22% YoY.
Bose concludes: “China’s growth and India’s stability provide important support, but the breadth of declines across some other markets shows that risk appetite remains selective. The near-term trajectory for APAC deal activity will likely hinge on whether M&A confidence rebounds and PE activity gains strength alongside broader improvement in sentiments across more markets.”
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
