The Nikkei 225 VI declined, indicating easing caution as stock prices remained firm on the downside. Market attention is focused on the decline in US equities, long-term interest rate trends and the performance of Nikkei futures.
The Nikkei 225 VI was down 1.89 from the previous day, or 6.39%, at 27.70 as of 14:15. The day's high was 29.74 and low was 27.17.
Following declines in technology stocks in the US equity market, major semiconductor-related stocks and others were sold in Tokyo, weighing on the Nikkei Stock Average. Nikkei 225 futures also came under selling pressure at times.
Domestic interest rates remained weak following the decline in US long-term yields, providing support for the equity market. After trading began, Nikkei 225 futures were firm on the downside at times, easing concerns about rising volatility.
The Nikkei 225 VI is an indicator of the expected magnitude of market fluctuations over the coming month. It tends to surge during sharp declines and generally has an inverse correlation with the Nikkei Stock Average. One accompanying commentary notes that it often reverts to a range of around 20 to 30.