The Nikkei 225 VI fell 4.59% from the previous day to 27.02 as of 2:10 p.m. Expectations for an early rate hike receded against a backdrop of gains in U.S. stocks and comments from senior FRB officials, while domestic long-term interest rates declined. Stock prices in the Tokyo market remained firm, easing concerns over volatility.
The Nikkei 225 VI was down 4.59% from the previous day at 27.02 as of 2:10 p.m. The intraday high was 27.67 and the low was 26.37.
Following gains in U.S. stocks yesterday, buying led the Tokyo market, and Nikkei 225 futures opened higher. The backdrop was a retreat in expectations for an early rate hike in the United States, prompted by comments from senior FRB officials, along with a decline in domestic long-term interest rates. As a result, stock prices in the domestic equity market remained firm, contributing to the decline in the Nikkei 225 VI.
The Nikkei 225 VI is an indicator of the magnitude of fluctuations in the Nikkei 225 expected by the market over the coming month. It tends to rise during sharp market declines and normally has an inverse correlation with the Nikkei 225. It also tends to revert to a certain range after a sharp rise.