Bank of Japan president warned the market or was too relieved of geopolitical ri

Bank of Japan president Kurodahito warned that investors may be too relieved about geopolitical risks that could cause financial market turmoil and interrupt the recovery in the global economy.

The optimism about the global economy has pushed the global stock market into decades, and investors have ignored the geopolitical risks of tensions between North Korea and the United States.

Kuroda Higashihiko said at the G-30 seminar that the global economic recovery is becoming more and more extensive, and that trade and industrial production are increasing to stimulate capital expenditure and private consumption.

But he says policymakers must be aware of some of the risk factors that could leave the prospect, such as a decline in productivity, weak inflation and geopolitical risks in many developed economies.

"So far, geopolitical risk has not raised the market risk aversion. Asset valuation is still high, the volatility is at historically low levels," said Kuroda.

"Financial market stability is good news, but there may be some complacency of the market, not properly reflect the risk, which need to pay attention," he said.

In Japan, Kuroda pointed out that despite the moderate and steady economic expansion, inflation is still weak, which means that the Bank of Japan will temporarily maintain a huge monetary stimulus measures.