Japan has high vaccination rates, low inflation, and positive growth prospects, as most countries struggle with economic recovery from the COVID-19 Omicron mutation. And given Goldman Sachs’ (GS) and Morgan Stanley’s (MS) bullish outlook on the country’s growth prospects, we think it could be wise to bet on fundamentally sound Japan-based stocks Honda Motor (HMC), Sumitomo Mitsui Financial (NYSE:), and Canon (CAJ). Let’s discuss.While most economies are still grappling with the rapidly spreading COVID-19 omicron variant, Japan is boasting a high vaccination rate. According to Statista, as of November 30, 2021, more than 72% of the third-largest economy’s population was fully vaccinated (two doses). The country has also been accelerating COVID-19 booster shot and secured oral medicine, both of which are likely to accelerate the recovery process.

A Reuters report says that Japan is looking at raising its fiscal growth projections for 2022. This would be in addition to its $490 billion stimulus package. Not only that, Goldman Sachs Group Inc. Morgan Stanley (NYSE:) provided a positive outlook on Japan’s growth prospects, given its low inflation, cheap valuation, and high vaccination rates. They set a benchmark index of 2,250 points over 12 months.

This backdrop suggests that it might be sensible to invest in quality Japanese-based stocks Honda Motor Co., Ltd. Sumitomo Mitsui Financial Group , Inc., and Canon Inc. They trade at significant discounts to peers and offer tremendous growth potential.

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