Goldman Sachs says Japan is a 'bright spot' right now and reveals some top stocks

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Goldman Sachs says one Japanese sector looks particularly good value, and its top picks include one stock on its conviction list.

Goldman Sachs is bullish on Japan right now and says banks in particular are seeing a "high level of interest" following rallies of around 30%.

" "We certainly think there is more upside from the current valuation," she added, compared to the 0.9 to 1 times price-to-book levels that Japanese banks were trading at in 2015 before the Bank of Japan's negative interest rate policy. A price-to-book ratio captures a firm's market capitalization levels against its book value. A ratio below one is generally viewed as a good investment by investors looking for value.

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