Share buyback authorizations by Japanese companies are increasing at the fastest pace on record, reaching about 12.7 trillion yen from April 2026 through August 12. According to data from Daiwa Securities, TOPIX constituents set buyback authorizations of 10.5 trillion yen from April through the end of August 2025, and this fiscal year the figure reached 12.7 trillion yen as of August 12, after the earnings season passed its peak. Although the periods differ and cannot be compared directly, the amount already exceeds the previous year's full-year result by more than 2 trillion yen. Behind this are a stronger stance on shareholder returns and the revised Corporate Governance Code published by the Tokyo Stock Exchange and the Financial Services Agency on July 21, which includes language requiring boards of directors to continuously review the effective use of cash, deposits, and financial assets. Daisuke Hashizume of Daiwa Securities pointed out that buyback announcements are a sign of confidence in companies' earnings outlooks, while Jun Ishikane of Mitsubishi UFJ Asset Management said they tend to be well received by overseas investors and can be expected to attract fund inflows. With the TOPIX recently setting record highs day after day, the overall tone of Japanese equities is firm, and the spread of buybacks is likely to be seen as a factor supporting share prices.
Daiwa Securities Group Inc.Daiwa Securities is the data source for the record buyback authorizations, highlighting its market position and the trend it reports.
Mitsubishi UFJ Financial Group, Inc.Mitsubishi UFJ Asset Management comments that buybacks attract fund inflows, benefiting asset managers like MUFG.
