Wall Street sees further upside for Japan stocks as they notch a fresh three-decade high

Goldman Sachs strategists wrote in a Monday research note that foreign investors' positioning on stocks in Japan is still underweight.

"Given this large underweight and light positioning, we see potential for further large-scale inflows into the Japanese equity market in the event that steady progress with structural changes/reforms strengthens the confidence of foreign long-term investors," the Goldman analysts said.

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