Panic selling causes record spike in volumes in Japan ETFs

ETFs based on the MSCI Japan index have seen volumes reach unprecedented levels and large swings in volatility as investors digest events in Japan.

Exchange-traded funds (ETFs) tracking Japanese equity indexes have experienced record high levels of trading and large spikes in volatility during the past few days, as investors respond to events in Japan.

The Nikkei 225 stock index sold off heavily earlier this week, as Japanese authorities struggled to contain an escalating nuclear crisis following last Friday's 9.0 magnitude earthquake and ensuing tsunami. Trading volumes in ETFs linked to Japanese equity indexes have soared in response.

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