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According to a Reuters report, the Japanese government is considering raising its economic growth forecast for fiscal 2022, accounting for its record $490 billion stimulus package. In addition, Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS) provided a positive outlook on Japan’s growth prospects, given its low inflation, cheap valuation, and high vaccination rates. They have set a 2,250 12-month target for the benchmark Topix index.
Given this backdrop, we think it could be wise to bet on quality Japan-based stocks Honda Motor Co., Ltd. (HMC), Sumitomo Mitsui Financial Group , Inc. (SMFG), and Canon Inc. (CAJ). They are trading at discounts to their peers and have immense growth potential.
