Japanese corporates are making history by buying back their own shares at an unprecedented rate, reaching a record high of ¥14.9 trillion. The move comes as companies seek to raise their stock value amidst dwindling prices and investor skepticism. While the push to reinvest in their own shares is seen as a sign of substantial corporate liquidity, there are concerns among investors about its impact on the broader economy.

In Japan, stock buybacks are often a way for corporations to increase shareholder value by reducing the number of available shares, thereby increasing their price. There is increased scrutiny and debate surrounding this practice as it indicates companies aren't investing their cash in new ventures or improvements which could stimulate economic growth, instead choosing what some consider short-term boosts to their stock price.

In the United States, stock buybacks are commonplace and viewed favorably as a means of returning capital to shareholders. In the wake of the COVID-19 pandemic, however, some US companies faced backlash from public and politicians for buying back stock while laying off employees. The European Union has more restrictions, with buybacks being seen as a last resort mechanism to prop up stock prices.