Nikkei In Free Fall (NYSE: SNE), 500, DOW

NEW YORK - The Nikkei Japan's largest index is in free fall as the country is there is now a larger risk of a nuclear metldown. The Japanese benchmark is down a catastrophic 14% as we near the close in Japan. The Japanese share market's benchmark is down over 20% per cent in the last two days, wiping out nearly 2 years worth of gains. Japanese Prime Minister Naoto Kan tried to calm the markets on fears over the the danger from the crippled Fukushima nuclear plant. Authorities now believe the reactor has been damaged. People now believe that nuclear fallout from the reactor could reach Tokyo within 10 hours.

The Prime Minister said that people within 30 km should say indoors. Last night, Japan's chief government spokesman Yukio Edano said a meltdown was"highly likely" at three of the plant's nuclear reactors on the country's shattered northeastern coast,

The official death toll in Japan has now topped 2,400 yesterday it was at 1,647 with 3118 missing.

8.8 Earthquake Hits Japan, Nikkei, Dow Jones, SP 500

NEW YORK - A massive 8.8 earthquake on the Richter Scale hit Japan today which has triggered tsunami warnings across the Pacific Ocean. The earthquake was followed by many aftershocks, many of them have been above 6.0 in force. The earthquake is the largest ever recorded in Japan.

There has been a report from Tokyo of 300 people dead and 500 missing, but estimates are difficult to measure because aftershocks are still continuing. The earthquake caused a imminent 1% drop on Japan's biggest stock market index, the Nikkei. The futures in Japan continue to drop nearly 5% which means the markets will likely open lower before Monday's open.

The Kobe earthquake which hit Japan in 1995 was a 7.2 magnitude quake and over 6,000 people lost their lives. The damage was 2.5% of Japan's GDP.

At this time it is unsure it is unsure what the damage will be from today's earthquake.

Japan's Nikkei Feels the Pressure

Japan’s Nikkei slipped down in the trading session as market players worried that the strong Yen could hold back economic growth. The Bank of Japan (BJ) governor and the Japan PM talked on the phone on forex-Sengoku about currency, and agreed to work closely. Players speculated that the BJ would be under pressure for further action to try and loosen its tight policies.

“The BJ needs to work harder to stimulate the economy,” Allan Edwards, co-CEO of The Markets Are Open said bluntly. “Otherwise, they’re screwed.”

“Stay away from the Japanese stocks for now.” Andy “Raw” Kibbens, star analyst and co-CEO at The Markets Are Open said at the close of the Nikkei last week. “They’re in for a rough ride.”

US stocks inched down as well as Japanese fears spread globally. Large sums of money were flowing into US bonds and JGBs.