According to ratings agency S&P Global, emerging markets are set to remain a key driver of global growth in 2026, while capital flows into the region should remain positive as investors seek higher yields and portfolio diversification.
The firm notes many Asian markets are actively expanding their investor and issuer bases while enhancing regulatory frameworks to broaden financing avenues for corporates.
Amit Baraskar, Vice President & Head of Treasury at Thomas Cook India observes that rapid, unpredictable and interconnected changes such as AI, climate shifts and geopolitics are challenging traditional business strategies, demanding new approaches to risk, innovation and operations and turning disruption into opportunity.
“Having been conservative on capital expenditure and expansion plans in the first two years post-Covid, 2025 brought about a turning point in this approach,” he says. “The increase in funds raised last year speaks to the resilience of the corporate world and the return of intent and confidence of the investor community.”
From a regional perspective, it is notable that this growth was fuelled by Asian corporates with
Hong Kong, India and Mainland China accounting for almost half of the funds raised via initial public offerings (IPOs) globally. Japan also saw increased demand for fundraising.
Baraskar reckons it is particularly significant that even relatively small companies now see IPOs as a realistic prospect.
“There were several interesting deals in India last year, such as Stanbik Agro (a manufacturer, wholesaler and supplier of agricultural commodities with only 18 employees) whose IPO raised just US$1.3m and was over-subscribed,” he says. “Other notable transactions included Exato Technologies, which was 950 times over-subscribed.”
Analysts at RBC Wealth Management believe Asian credit markets head into 2026 on a firm footing. Investment grade credit spreads remain anchored by steady economic growth, contained inflation and ample domestic liquidity. Corporate credit fundamentals are sound, leverage has moderated and supply remains disciplined.
Even high yield segments have weathered global rate volatility for most of 2025, underscoring Asia’s resilient credit markets.
Higher Japanese government bond yields are prompting more Japanese corporates to issue US dollar-denominated bonds, increasing Japan’s role in Asian credit markets. While warning that this may potentially widen credit spreads, RBC Wealth Management reckons strong domestic demand – driven by lower US dollar hedging costs – should support positive returns and provide attractive relative valuations for global investors.
“Apart from technology – primarily around but not restricted to AI infrastructure – and real estate, other sectors attracting investor flows include financial services, consumer goods, industrial products, renewable energy, green resources, oil and gas, mining and consumer goods and services,” adds Baraskar.
