Prime Minister Fumio Kishida indicated he could consider writing guidance for companies on share buybacks, triggering a dip in the nation’s stock market that’s been boosted by such repurchases in recent years.
Kishida said Tuesday introducing "guidelines” on buybacks would be appropriate, in response to a question in the Diet from opposition lawmaker Takayuki Ochiai. The premier added that caution would be needed in implementing any strict regulations.
The comments come as investors watch for a different approach from Kishida after a series of shareholder-friendly reforms started under former Prime Minister Shinzo Abe. Kishida came to office earlier this year pledging to roll back what he called "neoliberal” measures of the past two decades, with a greater focus on narrowing the gap between rich and poor.