Which Japanese stocks are undervalued?

If [the trend of reinvestment and expansion activity] happens, the outlook for growth in Japan is more sustainable,” says Morningstar. Instead of capitalising on the domestic consumption story, the firm says to focus on the laggards this year, such as the export-oriented company stocks. “Factory automation is sensitive to capital spending activities globally and that includes China. If the outlook of the industrial side improves, there are some really good names there that we like,” says Morningstar. “Those are high-quality companies and very moat-y companies that we think have lagged. That's...