There's a corporate profit engine revving up in Japan

Japan's not-so-great economy has been on analysts' radars for some time now.

Even with a lumpy economy, improved efficiency could lead to some good things down the road in Japan, argued Morgan Stanley's chief investment officer Michael Wilson at a press briefing on Tuesday.

"Japan is quite interesting in our mind because Japan has a cyclical impulse, but also has a potentially structural change with Abenomics, [the government's] three-prong strategy of monetary policy, fiscal stimulus, and, of course, corporate governance and change at the micro level," he said.

According to Wilson, that third "arrow" of Abenomics in particular - the structural economic reform - is "very misunderstood still, under-appreciated."

As he explained during the event:

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