Asia markets seeing 'unbelievable' rush of capital, driving equity rallies and IPO frenzy

Asian equity markets are attracting global investors, with a surge in initial nationalist offerings, rising cross-border flows, and accelerating woody enactment underscoring the region's increasing value successful planetary superior markets, according to elder executives astatine JPMorgan and Goldman Sachs.

"It's unbelievable what enactment we're seeing [in Asia]," Sjoerd Leenart, JPMorgan's Asia Pacific CEO, said connected CNBC's "Access Middle East" Monday, adding that a important stock of IPO volumes past twelvemonth came from the region. IPO proceeds successful Asia Pacific besides much than doubled past year, according to EY data, with 7 retired of the apical 10 planetary deals happening successful the region.

"We spot this [activity] successful the M&A markets … but besides successful the equity markets, and it's really rather widespread," Leenart said.

The beardown inflows astatine the commencement of the twelvemonth travel a robust 2025, erstwhile respective Asian equity benchmarks outperformed the U.S.

The MSCI AC Asia Pacific index, which tracks implicit 1,000 large- and mid-cap stocks crossed 13 determination markets, has deed aggregate records this year, having gained much than 25% successful 2025. Japan's benchmark Nikkei 225 and South Korea's Kospi person besides deed all-time highs successful caller days.

According to information from Goldman Sachs, overseas inflows into South Korean markets person been healthy, with Korea-focused communal funds seeing astir $1.3 cardinal successful nett inflows this twelvemonth arsenic of mid-January.

Similarly, regular turnover crossed China's Shanghai, Shenzhen and Beijing banal exchanges deed grounds this month, prompting regulators to tighten borderline financing rules.

In 2025, Asia-Pacific was the largest portion by IPO proceeds, according to a caller survey by EY. The portion saw a 106% surge successful proceeds compared with 2024, with India remaining the world's apical progressive listing destination by woody count.

"China, Hong Kong person been a large portion of that. And it's fantastic to spot the marketplace assurance coming back," said Leenart.

"That affirmative inclination from 2025 I think, is apt to acceptable done successful 2026," Leenart added. "The Chinese are doing everything to proceed to stimulate the economy, and that's what radical are betting on."

The renewed involvement successful Asia comes arsenic investors reassess however businesses and markets are functioning amid persistent geopolitical uncertainty. Kevin Sneader, Goldman Sachs' APAC ex-Japan president, told CNBC that markets person go much adept astatine operating done volatility alternatively than waiting for it to pass.

"China, India, Japan, Korea. Very overmuch connected the attraction of planetary investors," helium said.

"It is existent to accidental there's a batch of renewed involvement successful Asia and renewed involvement successful China. Part of that has travel from resilience and indeed, the awesome mode successful which exertion has been processing successful this portion of the world," Sneader said, highlighting South Korean markets and its semiconductor companies arsenic a cardinal beneficiary.

Technology firms Samsung Electronics and SK Hynix unneurotic relationship for implicit 30% of the full Kospi index, information from Yuanta Securities showed. SK Hynix soared 274% successful 2025, and has precocious 20% truthful acold this year, arsenic per LSEG data. Samsung Electronics skyrocketed 125% past twelvemonth and has gone connected to beforehand 30% twelvemonth to date.

Goldman Sachs expects Chinese equities to emergence astir 20% this year. It has besides lifted its 12-month people for Taiwan's TAIEX to 34,600 from 32,400, implying 8% upside citing stronger-than-expected net maturation arsenic AI request boosts the outlook and concern plans of the TSMC — the world's largest chipmaker.

Goldman said rising superior spending astatine TSMC and sustained tightness successful precocious chips are lifting nett forecasts crossed Taiwan's broader semiconductor and hardware proviso chain.

Late Monday, President Donald Trump said that helium was expanding tariffs connected imported autos, pharma, and lumber from South Korea from 15% to 25% due to the fact that of a hold successful that country's legislature approving a trade woody with the United States reached past summer.

While immoderate car stocks fell, South Korea's Kospi was trading 0.6%.

"Tariffs are a portion of life. I deliberation concern leaders are learning to unrecorded with them and recognize that," Sneader said a time earlier. "In that context, what truly matters is however their businesses perform, and for investors, however you origin that into your determination making."

— CNBC's Emily Tan contributed to this story.