The Nikkei Volatility Index rose 4.32% from the previous day to 35.28 in today's trading, with an intraday high of 36.04 and a low of 34.96. Expectations for volatility have strengthened against the backdrop of declines in U.S. stocks and the start of vote counting in the U.S. midterm elections.
Tokyo stocks opened lower in response to the trend in U.S. markets, but the Nikkei Volatility Index has remained above the previous day's level. After trading began, Nikkei 225 futures opened lower but held firm on the downside, and caution over rising volatility continued.
The Nikkei Volatility Index indicates how market participants view the potential range of fluctuations over the coming month, and tends to rise sharply when the Nikkei Stock Average is in a steep decline. At the same time, once the index settles down, it also tends to return to range-bound trading.
The latest rise appears to have been influenced by the decline in U.S. markets and the caution surrounding the start of vote counting in the U.S. midterm elections, but news reports do not provide a specific outlook for future price movements. Attention is expected to remain focused on developments going forward.