The Nikkei Stock Average Volatility Index (Nikkei VI) rose sharply from the previous day. It rose to 35.97, with an intraday high of 38.72 and a low of 34.59. Uncertainty over the Middle East, concerns about overheated AI investment and the discovery of a PHP vulnerability heightened caution in the market.
The Nikkei VI rose sharply to 35.97, up 5.12 from the previous day, an increase of 16.60%. It traded with a high of 38.72 and a low of 34.59. Despite gains in U.S. stocks the previous day, trading in the Tokyo market opened with buying and selling intermingled. A mood of caution over rising volatility spread across the market.
Against this backdrop, investor sentiment was tempered by uncertainty over the outlook for the Middle East, concerns about excessive investment in artificial intelligence (AI), and the discovery of a serious vulnerability in PHP, a programming language.
After trading began, Nikkei 225 futures extended their decline, adding to the rise in the Nikkei VI and unsettling the market. The Nikkei VI continued to trade well above the previous day's level.