However, perhaps there is a justification to viewing an investment in these shares more favourably as a result of this announcement.
You have mentioned many times how Japanese companies have a tendency to do very poorly on capital allocation - i.e. hoard cash rather than put it to work. A clear indication of better capital allocation surely deserves a more favourable assessment of value .....

Makes some sense.

There is a hierarchy of intelligence of capital allocation, varying from company to company, and sometimes requiring some difficult assessments on the part of management.
As you note, these buybacks, probably not done at an outrageous valuation level, are probably better than holding billions of yen in a bank account as some firms do.

When screening for international firms I always require a good dividend.
Among other things, this often helps you pick securities where your interests align with those of a controlling shareholder, perhaps more important than the dividend itself.


Back to how to distribute excess cash: arguably the most rational choice would be wildly unpopular.
When the stock price is really cheap, cut the dividend and do buybacks. When it gets expensive, quite the buybacks and go back to dividends.

Jim