Tokyo stocks remain trapped in a deepening slump, mirroring negative investor sentiment.
After hitting a year-to-date high of 14,529.41 on May 7, the benchmark 225-issue Nikkei average sank below the 11,000 level during thin trading on Wednesday. Daily average turnover has plunged below 600 billion yen this month, down roughly 25 percent from 800 billion yen over the period from March to May. This reflects a shift in preference away from information technology stocks.
The recent volatility in the Tokyo market has sent shares reeling along a broad front, driving up their volatility ratio, a yardstick for price swings over a given period of time. The volatility ratio now stands at 47 percent for the Nikkei average, up from 15 percent at the start of the year.