ASICS announced on 9 September that it would conduct a share buyback of up to ¥70 billion. The market reaction was limited, with the stock rising briefly after the announcement before declining again.
The Nikkei 225 ended lower at ¥64,011, its first one-month low. As higher oil prices and rising interest rates worldwide weighed on the economy, while selling in AI and semiconductor-related stocks pressured the market, some market participants believe the impact of share buybacks, which had supported the economy, is changing.
ASICS announced during trading hours on 9 September that it would conduct a share buyback of up to ¥70 billion. The buyback attracted market attention as the company's largest ever, but although the stock rose immediately afterward, it continued to decline from the following day. Chairman and CEO Hirota Yasuhito said that the market determines the share price, while indicating that he believes it is currently diverging from an appropriate level.
Share buyback announcements have remained at high levels in 2026. More companies are expected to announce buybacks when they release their interim results in the autumn, but stock price performance is being viewed less favorably than in the past. Some observers say the market is increasingly focused on ROIC and ROE levels.
Another market participant pointed to why Toyota Motor's buyback of up to ¥1 trillion, announced in August, has attracted relatively little attention as a market catalyst. Investors focus on the story behind a buyback, and some believe that a weak explanation makes it difficult for the market to assign a higher valuation.
NEXON announced a special dividend in August and indicated that it plans to strengthen shareholder returns, backed by cash of approximately ¥842 billion. The formal resolution is scheduled to be made at a September board meeting. The company's substantial cash and deposits have raised expectations that additional special dividends could continue, supporting a recovery in the share price.