The Nikkei Volatility Index rose sharply to 31.90 as of 2:00 p.m., up 6.91 from the previous day. Falling U.S. stocks and tensions in the Middle East fueled caution, while Nikkei 225 futures were firm at times in the afternoon.
As of 2:05 p.m., the Nikkei Volatility Index was up sharply at 31.90, an increase of 6.91 from the previous day, or 27.65%. It traded at a high of 32.07 and a low of 31.49.
In U.S. equity markets, the Dow Jones Industrial Average fell 0.45% and the Nasdaq Composite declined 0.92% over the past 2 trading days. In overseas markets, rising crude oil futures and higher long-term interest rates are also fueling caution.
Nikkei 225 futures spent much of the morning in negative territory, but were firm at times in the afternoon. Concerns over rising volatility have not eased, and the Nikkei Volatility Index remains at its intraday levels.
The Nikkei Volatility Index is an indicator of the market's outlook for volatility over the following month. It tends to rise sharply when share prices plunge, while also tending to revert to a certain range after a sharp rise.