Japan has also created a new index to capture this new group of more pro-active companies. The JPX-Nikkei 400 Index was launched in January 2014 as a means of revitalizing the Japanese equity market. The Index employs a rigorous screening process based on return on equity, cumulative operating profit and market capitalization to  select high-quality, capital-efficient Japanese companies.

Japan “is now delivering some of the best earnings growth in the world. And if you think about a world where overall economic growth is pretty slow, you want to focus on markets where you can actually see companies do things to improve margins and deliver on earnings growth,” Parker told CNBC.

Looking ahead, Parker anticipates Japanese earnings growth of 5% to 10%, and given the recent sell-off, the strategist argues that the current environment provides a cheap buying opportunity.

“The markets are actually some of the cheapest we’re seeing anywhere,” Parker added.

Max Chen contributed to this article.

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