The Nikkei Stock Average Volatility Index (Nikkei VI) rose 0.95 from the previous day to 32.18, marking a sharp increase. U.S. stocks moved mixed, while caution across the Tokyo market intensified amid selling in AI- and semiconductor-related stocks and higher crude oil prices.
The Nikkei VI rose +0.95 from the previous day to 32.18. The intraday high was 36.97 and the low was 32.18. U.S. stocks were mixed.
Selling led in the Tokyo market, and selling spread to domestic AI- and semiconductor-related stocks. Rising crude oil prices and higher global interest rates driven by inflation concerns also weighed on the market, causing the Nikkei Average to widen its losses sharply through the morning session. Although the index at times resisted further declines on short-covering in futures, losses widened again in the afternoon and it closed lower.
The Nikkei VI traded above yesterday's levels for much of today's session, but its gain narrowed toward the close. The Nikkei VI is an indicator of the magnitude of market volatility and tends to be inversely correlated with the outlook for future volatility risk.
Following these developments, market caution over rising volatility has intensified. Attention is expected to remain focused on trends in AI- and semiconductor-related stocks, crude oil prices and U.S. markets.