A steep 49% year-on-year ( YoY ) fall in mergers and acquisitions ( M&A ) activity weighed heavily on the Asia-Pacific deal activity in January 2026, pulling the overall transaction volumes ( M&A, private equity and venture financing ) down 36%, according to a recent report.

This reflects a more cautious environment among the corporates and investors amid the persistent macro uncertainty and tighter funding conditions, finds an analysis of intelligence and productivity platform GlobalData’s Financial Deals Database.

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 Asia-Pacific region during January 2025.

Meanwhile, venture financing deal volume declined by 20% whereas the number of private equity deals was down by 75%, pointing to continued investor selectivity, extended diligence cycles and a preference for clearer path to profitability opportunities.

Most of the countries in the Asia-Pacific region, the report points out, experienced weak deal activity in January 2026. China, for instance, which is the top Asia-Pacific 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.

“Asia-Pacific deal activity saw a slow start in 2026, with both acquirers and investors prioritizing valuation discipline,” adds Aurojyoti Bose, GlobalData’s lead analyst. “It indicates that decision-making cycles are lengthening and risk appetite remains constrained.

“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.”