Japan's economy may have slipped into recession, but its equities hold much potential, it has been claimed.
There are some exciting investment opportunities available among Japanese blue chip stocks, according to the head of Japanese equities at Invesco Perpetual.
Paul Chesson believes Japan is well placed to weather the economic storm that is engulfing the world thanks to strong corporate balance sheets and he points out that quality shares have now become quite cheap.
"We have definitely reached levels of deep value in Japan, the likes of which I have not seen in my career, which even in the face of the doom and gloom is very exciting," he comments.
Indeed, he says he is more bullish than he has ever been about the ability of Japanese equities to deliver absolute returns for investors and points to technology and automobile stocks as areas that offer the most potential.
He insists that not all Japanese equities are good value and some sectors will suffer in the months ahead, which means investors must continue to be cautious.
His comments come after it was confirmed that Japan's economy has entered into a recession after shrinking by 0.1 percent between July and September. It is the first recession experienced by the country since the bursting of the dot com bubble in 2001.
