A steep 49% year-on-year (YoY) fall in mergers & acquisitions (M&A) activity weighed heavily on the Asia-Pacific (APAC) deal activity in January 2026, pulling the overall transaction volumes (M&A, private equity and venture financing) down 36%. This reflects a more cautious environment among the corporates and investors amid the persistent macro uncertainty and tighter funding conditions, according to GlobalData, a leading intelligence and productivity platform.
An analysis of GlobalData’s Financial Deals Database reveals that all the deal types under the coverage registered YoY decline in volume during January 2026. The impact of decline in M&A is notable given that it accounted for more than half of the total number of deals announced in the APAC region during January 2025.
Meanwhile, venture financing deal volume declined by 20%, whereas the number of private equity deals was down by 75%, pointing continued investor selectivity, extended diligence cycles, and a preference for clearer-path-to-profitability opportunities.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “APAC deal activity saw a slow start in 2026, with both acquirers and investors prioritizing valuation discipline. It indicates that decision-making cycles are lengthening and risk appetite remains constrained.”
Most of the countries in the APAC region experienced weak deal activity in January 2026. For instance, China, which is the top APAC market by deal volume, registered a YoY fall in the number of deals by 17% during January 2026.
India, South Korea, Japan, Australia, Singapore, Hong Kong, Malaysia and India also saw their respective deal volume fall by 24%, 35%, 76%, 23%, 45%, 21%, and 33% YoY during the same period.
Bose concludes: “Looking ahead, while near-term activity may remain subdued, strategic investors with strong balance sheets and sector conviction are likely to capitalize on the pricing recalibrations, setting the stage for a more fundamentals-driven and selective recovery in the quarters ahead.”
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.
