The Nikkei Stock Average Volatility Index (Nikkei VI) fell sharply. The initial firmness following gains in US stocks continued, but trading settled in the afternoon and concern over large market swings receded.
The Nikkei VI fell sharply to 23.25, down 4.78 points, or 17.05%, from the previous day. As an indicator of expected future moves in the Nikkei Stock Average, it showed that recent market volatility had eased further.
Following gains in US stocks the previous day, Nikkei 225 futures generally remained firm after trading began today. Meanwhile, crude oil futures prices remained elevated in overseas markets, while rising US long-term yields also fueled caution.
In Japan, long-term yields were also seen rising. The Nikkei VI initially moved higher, but against a backdrop of firm share prices, concern over rising volatility gradually became limited.
At the close of trading, the Nikkei VI again ended sharply lower, and the late-session moves appeared to indicate that caution had eased.