The Nikkei VI rose sharply to 27.51, up 7.21, or 35.52%, from the previous day. Firm crude oil prices and persistently high U.S. long-term interest rates weighed on the market, leaving Tokyo stocks with limited upside after buying led at the open.
The Nikkei Stock Average Volatility Index (Nikkei VI) rose sharply to 27.51 on the 28th, up 7.21, or 35.52%, from the previous day. It traded between a high of 28.28 and a low of 27.35.
Buying led the Tokyo market at the open, but Nikkei 225 futures turned lower after the initial buying subsided.
The reported rejection by U.S. President Trump of Iran's new proposal contributed to firm crude oil futures prices. In addition, expectations for an early additional U.S. rate hike increased, keeping U.S. long-term interest rates elevated, while domestic long-term interest rates also continued to trend higher.
The Nikkei VI remained well above its level at the end of last week, reflecting market caution as an indicator of future volatility in the Nikkei Stock Average.