The Nikkei Volatility Index rose as the market braced for increased volatility ahead of the US midterm elections. The Nikkei Volatility Index rose to 35.72, up 1.90 points, or 5.62%, from the previous day, trading as high as 36.05 and as low as 34.96.
Following declines in major indexes in the US stock market yesterday, selling led in Tokyo trading. Nikkei 225 futures opened lower, and caution over rising volatility continued against the backdrop of the increase in the Nikkei Volatility Index.
In addition to the decline in US stocks, investors were focused on uncertainty over market fluctuations ahead of the US midterm election count, which is scheduled to begin on 4 November. Developments in the United States are expected to affect the Nikkei 225 as well.
After trading began, Nikkei 225 futures held relatively firmly at lower levels, while the Nikkei Volatility Index remained above the previous Friday’s level. Market participants are watching the impact of US factors while remaining alert to increased volatility.