An asset management titan is waiting for a pullback in Japanese stocks before stepping in to buy.

UBS Global Wealth Management is waiting for a 5% to 8% correction on the basis that valuations are “no longer depressed” and share buybacks — a key tailwind — will be “muted” during the summer months. Japanese shares have rallied to a 33-year high on hopes that the nation will beat deflation and continue corporate reforms to boost shareholder returns.

“The summer months would be months where there could be a risk of profit taking and you don’t have this share buyback catalyst,” Min Lan Tan, the head of the firm’s chief investment office Asia Pacific, said last week. “Foreign investors actually have bought quite a lot into Japan so we think that there could be a pause in the market. We want to be a bit more patient.”

UBS Group AG’s Global Wealth Management division had invested assets of $2.96 trillion, according to its first quarter report.

Japan’s benchmark Topix Index has soared 19% this year, buoyed by a weak yen and a surge in demand from overseas investors. A Tokyo bourse campaign to boost valuations is also playing a role.

The gauge rose 0.6% Tuesday.

“If there’s a 5% correction, 8% correction, we’ll be happy to be adding to this market,” Tan said.

(Updates with Topix move)