Japanese stocks have lag behind their peers in the first quarter of this year. But, Suresh Tia at Credit Suisse believes that this trend will reverse soon.

Tantia, senior financial strategist for Credit Suisse’s Asia-Pacific CIO, stated that Japan is their favorite market in the “developed market space” during Thursday’s CNBC interview.

He said that Japan has underperformed the U.S. stock market this year, despite strong earnings momentum.

Japan’s Friday closing time was Nikkei 225The 2021 average has grown 7.89% Comparatively, the S&P 500Stateside rose more than 24% during the same period.

Tantia first pointed out Fumio Kishida, the Japanese Prime Minister. resounding victory in the recent parliamentary electionThe win was described by a “very positive market result” because of expectations that the nation’s leader would introduce additional stimulus.

Valuations are considered the second most important, according to the strategist.

He said, “If you take a look at the Japanese equity market’s valuation, it’s trading for a very attractive cost compared with other developed markets.”

He also mentioned the prospects for the Japanese yenThe dollar has fallen more than 10% so far in this year’s exchange rate.

Tantia stated that a weaker Japanese yen is a positive sign for the equity markets and that we expect JPY’s weakness against the U.S. dollar.