As of 14:05, the Nikkei VI had risen 2.35 from the previous day to 32.15. Against a backdrop of concerns over AI development and developments in the Middle East, the market expects volatility to rise.
As of 14:05, the Nikkei VI stood at 32.15, up 2.35 from the previous day (7.89%), after reaching an intraday high of 33.04 and a low of 31.71. Selling led the way in the Tokyo market, and with Nikkei 225 futures trading in negative territory, the rise in the Nikkei VI reflected heightened market caution.
One source of concern over AI development was a call by Dario Amodei, CEO of US AI company Anthropic, to curb the acceleration of AI development. This is viewed as a factor pushing up market volatility. In addition, Saudi Arabia's announcement that it had suspended operations on its East-West Pipeline was cited as a risk factor, increasing turbulence in futures and uncertainty in the market.
The Nikkei VI is described as an indicator of the Nikkei Stock Average's expected fluctuations over the following month. Historically, it tends to rise during sharp market declines and subsequently return to a range of around 20 to 30.