Japan Companies' Stock Buybacks Soar To Highest Level In 16 Years

Share buybacks by Japanese companies will reach their highest level in 16 years in the fiscal year ending this month, topping 9 trillion yen ($67.6 billion) and surpassing the record set in fiscal 2006, when growth in emerging economies led to strong corporate performances in Japan.

Mitsui & Co., a trading company, is planning its largest-ever buyback, and industrial conglomerate Hitachi will conduct its first buyback in eight years. Although Japanese corporate earnings are generally declining, there is a clear trend to give some of companies' abundant cash reserves back to shareholders in response to investor demands.