Rakuten Securities chief strategist Masayuki Kubota said governance improvements and pressure from the Tokyo Stock Exchange to raise shareholder returns have driven a rise in buybacks in recent years. If that trend continues, Japanese small- and mid-cap stocks could outperform large caps, as many still trade below book value. He added that large caps have historically tended to underperform when interest rates rise.

2026-09-07

Rakuten Securities chief strategist Masayuki Kubota said governance improvements and pressure from the Tokyo Stock Exchange to raise shareholder returns have driven a rise in buybacks in recent years. If that trend continues, Japanese small- and mid-cap stocks could outperform large caps, as many still trade below book value. He added that large caps have historically tended to underperform when interest rates rise.