Morgan Stanley Says Investors Should Look Beyond U.S. Stocks. Here's Where It Sees Opportunities.

Defense stocks have drawn attention as European governments increase military spending following Russia's war in Ukraine and broader security concerns across the region. (Credit: Michael M. Santiago/Getty Images)

Investors looking beyond U.S. stocks are finding stronger corporate earnings in Japan and Europe, where companies in sectors ranging from banking to defense have helped broaden opportunities outside Wall Street.

Morgan Stanley senior portfolio manager Andrew Slimmon pointed to rising earnings estimates as a major factor behind the performance of Japanese equities this year, while European companies have also recorded stronger results, he told CNBC's Squawk Box.