The Bank of Japan (BOJ) today released its Financial System Report, stating that Japan's financial system remains stable overall. The report highlighted that the expansion of global AI-related demand has improved market sentiment, but the situation in the Middle East, the profitability and financing of AI-related investments, and the development of the foreign non-bank financial intermediary (NBFI) sector remain highly uncertain factors. For the first time in its macro stress test, the report detailed the impact of declining profitability expectations for AI-related investments and assumed that portfolio adjustments by the foreign NBFI sector would amplify the shock. The report also noted that the Japanese stock market continues to trend upwards, deviating from its historical path, and real estate prices are also rising, particularly accelerating in the Tokyo metropolitan area, requiring close attention to the movements of these asset prices.