Asia Pacific Equity Derivatives Strategy Non-AI Investments in Japan: Buyback and Dividend Strategies with Reform Catalysts Ahead

Research evidence excerpt

Asia Pacific Equity Derivatives Strategy Non-AI Investments in Japan: Buyback and Dividend Strategies with Reform Catalysts Ahead

J P M O R G A N Global Markets Strategy

15 June 2026

Asia Pacific Equity Derivatives

Strategy

Non-AI Investments in Japan: Buyback and Dividend

Strategies with Reform Catalysts Ahead

• Japan Shareholder-Return Reform: Revisiting Buyback and Dividend Global Equity Derivatives Strategy

AC Implementation: With Japan’s AGM season approaching in the last two Tony SK Lee

weeks of June and potential governance code revisions expected by mid- (852) 2800-8857

2026, we revisit shareholder-return strategies through targeted buyback stocks tony.sk.lee@jpmorgan.com

and Nikkei dividend futures. The theme remains relevant as capital-efficiency J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

pressure persists, payout ratios still have room to rise, and our Japan equity AC Haoshun Liu

strategy team’s work on preparing for investment in non-AI names (852) 2800-7736

highlights growing interest in opportunities beyond narrow AI-led leadership. haoshun.liu@jpmorgan.com

• Extracting Alpha from Japan Buybacks via Long/Short Implementation: J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

Buyback activity in Japan remains very strong, with YTD announced buybacks AC Xipu Han

reaching ¥16tn by end-May 2026, reinforcing structural support for the (852) 2800-1029

buyback factor. Although the strategy didn’t outperform TOPIX during the AI- xipu.han@jpmorgan.com

led rally, a potential BoJ hike could catalyze a catch-up as investors reassess J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

non-AI investment themes amid rising Momentum polarization risks.