Dealmaking in Asia-Pacific remained under pressure in the first quarter of 2026, with overall activity slipping 6% year on year as weakness in mergers and acquisitions and private equity outweighed continued strength in venture financing.
According to GlobalData, the total number of announced deals across the region - including M&A, private equity and venture financing transactions - declined modestly compared with the same period in 2025. The firm said the drop reflects continued macroeconomic pressure on corporate and investor decision-making, even as appetite remained relatively resilient in some segments.
Aurojyoti Bose, lead analyst at GlobalData, said the regional picture was mixed rather than uniformly weak. “The decline could be attributed to challenging macroeconomic conditions. Meanwhile, the trend across different deal types remained mixed with sharp contractions in M&A and private equity deals offset growth in venture financing activity, resulting in a modest overall pullback versus Q1 2025.”
Venture financing stood out as the strongest area of activity during the quarter. GlobalData said venture deal volume increased 21% year on year, suggesting investors were still willing to back scalable growth themes despite the uncertain broader environment. That made venture capital the clear bright spot in an otherwise subdued quarter.
By contrast, M&A activity fell sharply. The number of announced mergers and acquisitions in the region dropped 26%, pointing to continued caution among corporates as longer decision cycles, regulatory scrutiny and geopolitical complexity weighed on strategic transactions. Private equity activity was even weaker, with deal volume down 42%, highlighting a more selective underwriting environment and tighter conditions for sponsors.
Geographically, the data showed a striking divergence between China and much of the rest of the region. China, the largest APAC market by deal volume, recorded a 38% year-on-year increase in announced deals. That growth helped cushion the broader regional downturn, but it was not enough to fully offset weakness elsewhere.
Several other major markets posted steep declines. Deal activity fell around 45% in Japan, 18% in Australia, 27% in South Korea and 18% in Singapore. India, meanwhile, remained broadly stable, with deal volume almost flat compared with a year earlier.
Bose said the uneven performance underlined how country-level dynamics are reshaping the regional landscape. “APAC deal activity in Q1 2026 reflects a cautious dealmaking cycle, with M&A and private equity remaining under pressure. The divergence between China’s growth and the widespread softness across other markets also underscores how dynamics can differ across countries and reshape the broader landscape.”
GlobalData noted that historical figures may change if previously undisclosed deals are added later.
