The Nikkei Stock Average Volatility Index (VI), a gauge of expected one-month fluctuations in Japan's benchmark stock average, fell to 30.25 by 2:10 p.m. on September 16, down 0.43 points, or 1.40%, from the previous day. The index's intraday range was 29.78 to 30.73, both below September 15's range of 29.84 to 31.17. Nikkei 225 futures initially benefited from buying interest before briefly turning lower as rising overseas crude oil futures and firm U.S. long-term interest rates highlighted a challenging external backdrop. Futures later returned to positive territory after morning selling eased, limiting downside pressure ahead of monetary policy events in Japan and the United States. A VI reading in the low-30s implies expected Nikkei Stock Average volatility of approximately 30% on an annualized basis over the coming month. The index typically rises sharply during equity sell-offs, has a weak inverse relationship with the Nikkei Stock Average and often returns toward 20 to 30 after a spike. Investors will watch the Bank of Japan's monetary policy meeting, the U.S. Federal Open Market Committee (FOMC) meeting and external conditions for the next move in the VI.