The Nikkei VI remained elevated in the 32 range, with investor concerns over Middle East risks persisting despite the sharp rise in the Nikkei Stock Average.
The Nikkei Stock Average Volatility Index (Nikkei VI) edged up 0.20, or 0.62%, from the previous day to 32.26 in afternoon trading on the 13th. Investor concerns about the outlook remained unabated even as the Nikkei Stock Average rose sharply. The Nikkei VI reached a high of 32.62 and a low of 31.63.
In the previous day's U.S. stock market, major indexes were mixed, but Nikkei 225 futures opened higher, supported by gains in the SOX Index. At the same time, uncertainty over the outlook for the situation in the Middle East was strongly felt. Nikkei futures remained firm, but concerns about a rise in volatility persisted.
The Nikkei VI measures the expected range of stock price movements over the coming 1 month and typically rises sharply when share prices plunge. However, it has remained elevated even as share prices have risen, an unusual development. Uncertainty over the situation in the Middle East could affect the sustainability of the stock market's rise, and movements in crude oil prices and long-term U.S. interest rates are being closely watched as factors that could influence the market going forward.
According to market participants, the rise in the Nikkei Stock Average has been supported mainly by semiconductor-related stocks, but investor caution remains high. The Nikkei VI's continued movement above 30 suggests uncertainty over future price movements. Although Nikkei 225 futures have remained firm, the VI could move differently depending on developments in the situation in the Middle East.