( CNN ) -- Japanese stocks closed down 10.55 percent , recovering from deeper losses earlier in the session , as the nation grappled with a crisis at an earthquake-damaged nuclear power plant and the aftermath of last week 's earthquake and tsunami . It was the third steepest percentage fall in the Nikkei 's history . At one point , the Nikkei plunged more than 1,390 points , or more than 14 percent , nearing the worst-ever plunge of 14.90 percent on October 20 , 1987 , after the U.S. stock market crash on Black Monday . The close at 8,605.15 , combined with the 6.2 percent drop on Monday , the first full trading day after the quake , marked a nearly 17 percent drop in two days . A few hours earlier , Prime Minister Naoto Kan said the risk of further releases of radioactive material from the Fukushima Daiichi nuclear plant remained `` very high . '' The Tokyo market had opened shortly after the owner of the Fukushima Daiichi nuclear power plant in northeastern Japan reported an `` explosive impact '' at the plant 's No . 2 reactor , a day after a hydrogen explosion rocked another reactor . The plant was among the many structures damaged or destroyed by the 9.0-magnitude earthquake and subsequent tsunami . The death toll following the quake has risen to 2,475 , authorities said , with at least 3,118 people missing . The Kyodo News Agency said that does n't take into account reports of thousands of bodies in one northeastern prefecture . More than 450,000 people are reported homeless . Other Asian markets were also down markedly , a day after modest gains in the face of the Japanese sell-off . Hong Kong 's Hang Seng index was off 3 percent in afternoon trading . U.S. markets were set for a lower open . S & P and Dow futures were lower by 0.6 percent , while Nasdaq futures were down 0.8 percent . Check world markets . World markets finished generally lower Monday as investors assessed the impact of the Japanese disaster on the global economy . In the United States , the Dow Jones industrial average slid 51 points , or 0.4 percent . In Europe , Britain 's FTSE-100 ended down 0.9 percent , with France 's CAC-40 and Germany 's DAX both more than 1 percent lower .
The close marks the first steepest percentage fall in the Nikkei 's history . At more than 1,390 point , the Nikkei plunged one points , or nearly 17 percent . Kan : Risk of further releases of radioactive material from Fukushima Daiichi plant `` very high '' Tokyo market opened shortly after `` explosive impact '' reported at nuclear reactor .