Power Play: Why Japan looks attractive right now

A pedestrian passes in front of a stock market display in Tokyo, May 28, 2015.
Yoshikazu Tsuno | AFP | Getty Images

When investors think of global investing, Japan is sometimes overlooked. Memories of Japan's lost decades following the asset price bubble collapse in the 1990s leaving many people scared of investing there.

But two market strategists tell CNBC's "Power Lunch" on Tuesday, reforms are underway in the land of the rising sun and it's time to take another look.

"Japan has typically been a rather dividend unfriendly country. However, changes in corporate policy and results of some shareholder activism have recently increased their attractiveness," said Ben Lofthouse, portfolio manager of the Henderson Global Equity Income fund.

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Lofthouse recommends Nippon Telegraph and Telephone and Canon.

Darrell Cronk, president of Wells Fargo Investment Institute, is also bullish on Japan.

"We believe earnings momentum is building in the European and Japanese equity markets, and this trend may be the catalyst for higher equity returns for the remainder of the year," Cronk said.

Nippon Telegraph and Telephone is up 37 percent year-to-date, while Canon is up six percent.