Nikkei VI rose 13% from the previous day to 33.30, as rising long-term interest rates in Japan and overseas and escalating geopolitical risks weighed on market sentiment.
Nikkei VI was up 3.83 points from the previous day at 33.30 on the afternoon of the 18th. As domestic long-term interest rates continue to reach new highs not seen since 1996, globally rising interest rates and mounting tensions in the Middle East are weighing on investor sentiment.
In the U.S. market, the 3 major indexes all fell for a second consecutive session. Uncertainty over U.S.-Iran negotiations to end the fighting persisted, while crude oil futures and U.S. long-term yields rose in overseas markets. The yield on 30-year U.S. Treasury bonds rose to 5.31%, reaching its highest level since 2007.
In Japan, the yield on newly issued 10-year Japanese government bonds rose to 2.945%, approaching the 3% level. The Nikkei Stock Average fell on concerns about the economy, while Nikkei 225 futures also plunged. The yen was in the mid-¥159 range against the U.S. dollar, with yen weakness, falling stocks and rising interest rates advancing simultaneously.
Nikkei VI normally has a weak inverse correlation with the Nikkei Stock Average, but rising interest rates and geopolitical risks are currently combining to heighten market concerns.