The Nikkei 225 stock average, the world's worst performer in the 20 years since it set its highest level, offers a cheap way to bet on emerging markets, according to Mitsubishi UFJ Asset Management Co.
Investors should buy Japanese steelmakers, machinery manufacturers and plant builders to benefit from economic growth in countries from China to Brazil, said Kiyoshi Ishigane, a strategist at Mitsubishi UFJ Asset Management.
China has allocated 89 percent of its 4 trillion yuan ($586 billion) stimulus fund to infrastructure, according to an August report by the McKinsey Global Institute.