The survey, which was conducted between 21 December and 3 January, polled 215 domestic and overseas institutional investors.
Reasons for optimism
There are a multitude of factors behind investors' optimism around Japan stocks: the Bank of Japan's accommodative stance, the national pension fund's increased allocation to Japanese stocks and positive earnings momentum.
In an interview with CNBC on Tuesday, Russ Koesterich, global chief investment strategist of Blackrock said the improvement in Japanese corporate earnings is underappreciated.
"One of the things that's happening in Japan which has gone unnoticed, is you're seeing a very big increase in corporate earnings and a significant increase in ROE (return on equity)," Koesterich said.
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"As you seen ROE move higher, that raises the valuations you want to play for the stocks. At a time when Japan is one of the few arguably cheap market in the world, it makes those stocks fairly attractive," he added.
Investors polled by Nomura expect recurring profit growth of 12-13 percent in FY2015, which begins on April 1.
Nomura believes there is scope for investors to upgrade their view on earnings given the yen's recent depreciation and the impact of lower crude prices.
Investors everywhere agree
Comparing responses between domestic and overseas investors, there was little significant divergence between views on the outlook for share prices and earnings, the bank said.
However, there was some divergence in terms of sector preference.
"Domestic investors appear relatively bullish toward construction and basic materials while overseas investors seem relatively bullish toward banks and real estate," the bank wrote in a note accompanying the survey.