Senior executives at JPMorgan and Goldman Sachs say Asian stock markets are attracting global investors, with a surge in initial public offerings, increased cross-border flows and accelerating deal activity underscoring the region’s growing importance in global capital markets.

“The activity we’re seeing (in Asia) is incredible,” Sjoerd Leenart, CEO of JPMorgan Asia Pacific, told CNBC.Entering the Middle EastOn Monday, he added that a large portion of last year’s IPO volume came from the region. IPO proceeds in the Asia-Pacific region also more than doubled last year, with seven of the world’s top 10 deals taking place in the region, according to Ernst & Young.

“We’re seeing this (activity) in the M&A market … and we’re seeing it in the stock market, and it’s actually quite common,” Leinart said.

Strong inflows at the start of the year follow a strong 2025, when multiple Asian equity benchmarks outperformed the U.S.

The MSCI AC Asia Pacific Index, which tracks more than 1,000 large and mid-cap stocks in 13 regional markets, has set multiple records this year and is expected to rise more than 25% in 2025. Japan’s benchmark Nikkei 225 and South Korea’s Kospi have also hit record highs in recent days.

Foreign capital inflows into the South Korean market have been healthy, with South Korea-focused mutual funds having net inflows of about $1.3 billion this year as of mid-January, according to Goldman Sachs.

Likewise, daily trading volumes on China’s Shanghai, Shenzhen and Beijing stock exchanges hit record highs this month, prompting regulators to tighten margin financing rules.

2025, Asia Pacific was Regions where IPOs raise the most fundsAccording to a recent study by EY. Revenues in the region surged 106% compared to 2024, with India remaining the world’s most active listing destination by number of deals.

“China, Hong Kong are a big part of this. It’s great to see confidence coming back,” Leinart said.

“I think the positive trend that started in 2025 may emerge in 2026,” Leenart added. “China is doing everything it can to continue to stimulate the economy, and that’s what people are betting on.”

Renewed interest in Asia comes as investors reassess how businesses and markets operate amid ongoing geopolitical uncertainty. Kevin Sneader, former Japan president of Goldman Sachs Asia Pacific, told CNBC that the market has become better at operating through volatility rather than waiting for it to pass.

“China, India, Japan, South Korea. They are very much on the radar of international investors,” he said.

“It’s true that there’s a renewed interest in Asia and China. Part of it is resilience and, indeed, the impressive way technology is developing from this part of the world,” Sneijder said, highlighting the Korean market and its semiconductor companies as the main beneficiaries.

Data from Yuanta Securities shows that technology companies Samsung Electronics and SK Hynix together account for more than 30% of the entire Kospi index. SK Hynix surged 274% in 2025 and is up 20% so far this year, according to LSEG. Samsung Electronics shares soared 125% last year and are up 30% so far this year.

Goldman Sachs expects Chinese stocks to rise about 20% this year. It also raised its 12-month target for Taiwan’s TAIEX to 34,600 points from 32,400 points, implying an 8% gain, citing stronger-than-expected earnings growth as demand for artificial intelligence boosted the outlook and investment plans of TSMC, the world’s largest chipmaker.

Goldman Sachs said increased capital spending by TSMC and continued strains on advanced chips are boosting profit forecasts for Taiwan’s broader semiconductor and hardware supply chain.

Late Monday, President Donald Trump Said it would raise import tariffs carmedicines and wood South Korea from 15% to 25% due to delays in approval by the country’s legislature Trade deal with the United States reached last summer.

While some auto stocks fell, South Korea’s Kospi fell 0.6%.

“Tariffs are a part of life. I think business leaders are learning to live with them and understand that,” Sneijder said a day earlier. “What really matters in this case is how their business performs, and for investors, how you factor that into your decision-making.”

—CNBC’s Emily Tan contributed to this article.