The Nikkei Volatility Index rose, and market caution has increased ahead of high U.S. long-term interest rates and the release of U.S. economic data. As of 2:10 p.m., the Nikkei VI was 28.60, up from the previous day.
Nikkei 225 futures traded mostly in negative territory today following declines in U.S. stocks. In line with this movement, the Nikkei VI at times showed limited upside, but had risen to 28.60 as of 2:10 p.m.
Domestic long-term interest rates remain elevated, and movements in U.S. long-term interest rates continue to be a focus. The release of the U.S. August PCE deflator and Micron Technology’s earnings are cited as factors warranting caution.
The Nikkei VI tends to rise when the Nikkei 225 falls sharply, and this time as well, market concern about rising volatility has intensified. The Nikkei VI has also been noted to tend to return to its historical range, generally around 20 to 30.
Caution is considered necessary regarding the level and future direction of the Nikkei VI, but no specific investment view is discussed.