Updated 9:45am: The FTSE suffered triple-digit losses in Tuesday trade after a third explosion rocked Japan's Fukushima nuclear power plant, raising fresh radiation fears and sparking a 1,000-point plunge on the country's Nikkei index.
Japan's Topix index posted its worst two-day results since the crash of 1987, as shares continued to sink.
Global insurance company share prices tumbled last night as concerns mounted about the cost of rebuilding Japan following Friday's earthquake and the resulting tsunami.
Fund managers warn Japan could take a short-term hit to GDP following last week's earthquake and tsunami, but they are less concerned about the longer-term impact on the country's fragile economic recovery.
Skandia Investment Group (SIG) has launched the Skandia Asian Equity fund for high conviction asset manager MIR.
Japan's credit rating has been cut to ‘negative' by Moody's on debt level concerns.
William Littlewood, manager of the £798m Artemis Strategic Assets fund, explains why he is bearish on Japanese bonds but favours Asian currencies, and why he is not buying miners.
Artemis' William Littlewood is running a "significant" short on Japanese government bonds in the view they will be damaged by Japan's high public debt.