“Much of the frothiness has come out of the market and valuation multiples have normalised. That’s a good thing.”

Dealmaking in Asia Pacific is looking pretty buoyant as companies assess the best places to allocate capital in volatile times, according to JPMorgan Chase & Co.’s head of investment banking in the region, Paul Uren.

While the veteran banker and his team are measured in the outlook for transactions in APAC this year, they are busy talking with clients about ways to diversify their businesses or supply chains, including through mergers and acquisitions.

Selling non-core assets, raising capital and refinancing debt are also under discussion, Uren said in an interview in Hong Kong.

“Asia has been a beneficiary of the rotation of capital from the US into other geographies,” he said, adding that JPMorgan will be hiring in the region as opportunities arise, including in Japan where many bigger deals could happen.

For companies with strong balance sheets, volatile markets could present an opportunity to expand via mergers and acquisitions, according to Uren. “Historically, companies that have executed M&A during periods of heightened volatility have been able to deliver superior returns,” he said.

Data compiled by Bloomberg show M&A deal volume involving firms in APAC is 32% greater so far this year than in the same period of 2024.

Japan has been one of the busiest places, with opportunities arising in the upheaval from corporate governance reforms, while there’s keen interest from private equity firms and more shareholder activism, Uren said.

“One area where we’re investing resources globally and in the region is on activism defence,” Uren added. “As the number of campaigns has grown exponentially, particularly in Japan and Australia, our bankers are spending more time educating boards about their vulnerabilities and how to defend.”

Another market with assets that are drawing demand is India, a country that is a priority for most global private equity firms, according to Uren.

“Much of the frothiness has come out of the market and valuation multiples have normalised,” he said. “That’s a good thing.”