Dealmakers across Asia Pacific are navigating a market shaped by larger transactions, shifting capital flows and the rising influence of artificial intelligence, according to new analysis from LSEG Data & Analytics.
While global M&A activity has rebounded sharply in the first half of 2026, the regional picture is more nuanced, pointing to a market that remains resilient and focused on long-term strategic investment.
LSEG Data & Analytics found that announced global M&A volumes reached $3tn year-to-date, up 46% on the same period last year, only the second time the market has hit that mark at the halfway stage. Deal count fell 10%, while mega deals worth more than $10bn hit 48 globally, the busiest year-to-date period since records began in 1980.
LSEG senior manager, deals intelligence, Elaine Tan said, “It’s been a quality-over-quantity market driven by very large strategic transactions.”
Asia Pacific and Japan followed a different path, with announced M&A value down 4% year-on-year to $648bn, even as deal volumes rose 8%.
LSEG analyst, deals intelligence, Vianca Sanchez said, “The top-line figures say one thing, but if you dig deeper, you’ll see a very different story.”
Fourteen mega deals above $5bn made up roughly a quarter of regional activity, but LSEG Data & Analytics notes much of the momentum came from mid-market transactions. High technology was the region’s largest target sector, attracting around $169bn, up 47% year-on-year, as capital flowed into AI developers, semiconductors, cloud infrastructure and data centres.
LSEG Data & Analytics observes that AI is increasingly shaping decisions beyond pure technology deals, with energy, industrials, telecoms and real estate all drawing AI-linked investment. Healthcare, materials and energy also recorded strong activity as firms pursued innovation and expansion.
Cross-border M&A rose 52% globally to its highest level since 2018, with Japanese and Singaporean investors among the most active outbound acquirers. Japan itself remains a standout market, driven by corporate reform and private equity interest.
Sponsor-backed deals targeting the region topped $100bn, the strongest since 2021, with technology accounting for nearly half of that value. Equity capital markets issuance reached $221.6bn, up 52% and the highest since 2021, with technology firms making up 44% of proceeds.
LSEG senior manager, deals intelligence, Elaine Tan said, “Technology is no longer a single-sector story because AI is now influencing deal activity across multiple industries.”
LSEG Data & Analytics expects AI-related investment, healthcare innovation and cross-border acquisitions to remain the defining forces shaping Asia Pacific dealmaking through the second half of 2026.
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