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Weekly Market Update

Japanese Stocks Get a Boost: The Buyback Boom

Head of North American Investment Strategy & Research

Insight of the Week

  • Japanese Equities have been on a notable upswing, in part, by a record-breaking increase in corporate share buybacks.
  • Japanese corporations reported buyback plans reaching ¥7.41 trillion (about 60 billion USD) in 2023 (as shown in the graph), a record high.
  • This development is a major divergence from Japan’s capital allocation practices, which have historically been conservative and frequently favored retaining sizable cash reserves by businesses.

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