Japanese firms reduce share buybacks for first time since 2020

Japanese companies are reducing their share buybacks for the first time since 2020, marking a notable reversal in corporate financial strategy after a period of increased capital returns. This pivot is primarily driven by heightened trade uncertainty stemming from the potential for the U.S. to implement more protectionist U.S. tariff policies under a future Donald Trump administration. Such a scenario compels Japanese firms to hold onto significant cash holdings, preparing for potential disruptions to global trade and supply chains rather than returning capital to shareholders, reflecting a cautious stance amidst a looming economic slowdown.