Investors have been fleeing Chinese markets in favor of others for much of this year, fearing the Asian giant's weak economic recovery. Funds under the Chinese A-share and Chinese stock categories attracted net inflows of $4 billion and $2.5 billion, respectively, for the first half of this year — mostly driven by the first quarter, according to Morningstar data. That's "far lower" than first-half flows into European and U.S.
The bank screened for Japan stocks with the following attributes: resilient earnings, price-to-book ratio below 1.5, and potential P/B upside relative to return on equity. Some names that turned up are: Mitsui & Co , Honda Motor , Nomura , Kansai Electric Power , Mitsubishi Motors and Panasonic . Emerging markets A shift in global supply chain dynamics and China's weakening export dominance is set to benefit some emerging economies, according to the pros.