The Nikkei Volatility Index (an index representing how investors anticipate the magnitude of future market volatility) rose significantly on the 29th, by +3.58 points (a 13.84% increase) to 29.44 compared to the previous day. The high was 30.41 and the low was 25.81. At the opening of today's Tokyo market, there was a slight selling pressure, with the Nikkei 225 futures starting with a decline, but then moving steadily in positive territory after the opening. While the market views trading related to the House of Representatives election as mostly concluded, many are also mindful of the upcoming U.S. presidential election voting on November 5, leading to a mood of increased vigilance towards rising volatility. Reflecting this situation, while stock prices were strong today, the Nikkei VI largely surpassed yesterday's levels.

What is the Nikkei Average VI?

The Nikkei Average VI is a numerical value that represents the magnitude of volatility (volatility) of the Nikkei Average stock price that the market expects over the next month. It has the characteristic of rising sharply when the Nikkei Average stock price sharply drops, and usually has a weak inverse correlation with the Nikkei Average stock price. On the other hand, it also has the characteristic of returning to a certain range (around 20 to 30) after a sharp rise in value.