The Bank of Japan believes that the Japanese stock market shows signs of overheating.

Jin10 reported on October 23 that the Bank of Japan stated on Thursday that there are early signs of overheating in the Japanese stock market, warning that uncertainty surrounding U.S. trade policy could trigger severe market corrections, impacting Financial Institutions. In the Bank of Japan's semiannual financial system report, there is a heat map that visually presents the financial imbalances of various asset prices and credit conditions, where “red” indicates overheating. The heat map shows that stock price items are “red,” while the other 13 categories are all “green,” indicating no significant deviation from the trend. On Tuesday, after Sanna Marin became Japan's first female prime minister supporting fiscal stimulus policies, the Nikkei 225 index and the Topix index both reached historical highs.