Japan Stock Fear Gauges Soar as Oil Spike Upends Bull Scenario

A gauge of fear in Japanese stock markets has surged to the highest level since the Covid crisis in 2020 as a sharp spike in oil prices dampens optimism about the country’s economic outlook and corporate earnings.

The one-year implied volatility of the Nikkei 225 Average shot up to over 30 points on Monday, the highest level since March 2020, when the global financial markets had seized up after the Covid pandemic spread worldwide.