"We think the driver of global equities in 2014 will be EPS growth rather than waning risk or higher stock valuations. We forecast earnings per share (EPS) growth of 19 percent for Japanese equities in 2014, the highest of all, followed by European equities at 14 percent," the bank said in a report earlier this month.
Rob Aspin, the head of Global Equity Investment Strategy at Standard Chartered Bank, said he is currently neutral on Japan stocks, but also sees 14,500 on the Nikkei as an attractive level to re-enter the market.
(Read More: Is the honeymoon over for Japan equities?)
"We're neutral the Japanese market at the moment, one needs to see the emerging markets story unfold further," Aspin said, noting that continued concerns over the outlook for emerging markets may fuel a further rise in the yen, which would be negative for Japanese stocks.
"Longer term, we remain positive. Expectations that the Bank of Japan will provide liquidity to offset the impact of the consumption tax should support the market," Aspin said.
The Bank of Japan is expected to provide additional monetary stimulus following the consumption tax hike in April in order to support the country's nascent recovery in private demand.
—By CNBC's Ansuya Harjani. Follow her on Twitter: