The Nikkei Average Volatility Index (Nikkei VI) fell from the previous day to 31.23. Selling led in the morning, following the trend in U.S. markets, but toward the end of trading the index turned lower, indicating firm downside support.
The Nikkei Average Volatility Index fell 0.94 points, or 2.92%, from the previous day to 31.23. It ranged between a high of 39.92 and a low of 31.23, while Tokyo stocks opened lower in line with movements in Nikkei 225 futures.
The decline in major U.S. stock indexes led to concerns over the profitability of AI investment and rising crude oil prices becoming risk factors.
Nikkei 225 futures fell after trading began, but downside support strengthened thereafter, easing concerns about rising volatility compared with the morning. The Nikkei VI narrowed its gain and turned lower by the close.
The Nikkei Average Volatility Index measures the market's expectations for the magnitude of future market movements and tends to rise sharply when the Nikkei Average falls steeply.