The Nikkei Stock Average Volatility Index (Nikkei VI) rose sharply on the 7th. However, selling prevailed in Tokyo, and intraday price movements remained subdued before turning sharply higher again by the close.
The Nikkei VI rose sharply, up 3.53 from the previous day, or 12.09%, to 32.73. It traded at an intraday high of 32.73 and a low of 28.16. Although major U.S. stock indexes rose the previous day, selling emerged first in Tokyo. Nikkei 225 futures remained in negative territory, prompting concerns about short-term overheating.
Nikkei 225 futures had risen about ¥7,580 from 16 September through the previous day, and the Nikkei VI was observed to rise amid these moves. Concerns about overheating persisted during trading hours, and the rise was at times viewed as a factor that could drive prices lower.
The Nikkei VI turned sharply higher again by the close. It traded below the previous day's levels during the day, but rose significantly at the close.