The Nikkei Volatility Index moved narrowly in the low 30s in Tokyo trading on the 27th. Nvidia's earnings announcement and movements in oil prices and US long-term yields are affecting market sentiment.
As of 14:10, the Nikkei Volatility Index had edged down 0.03 point from the previous day to 30.38, trading between a high of 31.63 and a low of 29.80. The index moved without a clear direction around the previous day's level.
Nvidia, the major US semiconductor company, released its results for the May-July period, and a rise in its shares in US after-hours trading supported sentiment in the Tokyo market. Meanwhile, the renewed rise in oil prices and US long-term yields has raised concerns about higher costs and a resurgence of excessive caution.
The Nikkei Volatility Index tends to rise sharply when share prices plunge, and its current level in the low 30s suggests that the market is leaning neither toward excessive pessimism nor excessive optimism. Lingering sentiment from the previous day and uncertainty over external factors remain areas of concern.
US inflation data, employment statistics and movements in oil prices will be the focus going forward. Whether the VI returns to the 20-30 range or rises into the upper 30s is expected to depend on the market's response to external factors.