Nikkei 225 Intraday Volatility Hits 2.5% in July, Driven by Korean Semiconductor Leverage ETF Trading

According to Nikkei Economic Daily, the Nikkei 225's intraday volatility reached 2.5% in July as of July 27, driven by heightened trading activity in Korean semiconductor leverage ETFs tracking Samsung Electronics and SK Hynix. The index experienced significant swings during the session, rising over 600 points at one point before reversing sharply.

The elevated volatility marks an unusual pattern for Japanese markets. Intraday volatility exceeding 2% for three consecutive months is the first occurrence since April 2009, following the Lehman Brothers crisis. Analysts noted that trading in Korean leverage ETFs amplifies price movements, with Japanese semiconductor stocks such as Kioxia closely tracking Korean counterparts in real time, causing spillover effects to the broader Nikkei index.