Japan's stock market lost almost 7% after its first full day of trading following the earthquake and tsunami that struck the country on Friday.
The Bank of Japan has kept interest rates static at between 0% and 0.1% in a bid to boost the nation's economy and rein in inflation.
The Japanese yen hit a new 15-year high against the US dollar today as prime minister Naoto Kan hinted at further currency intervention.
The Bank of Japan has cut interest rates to virtually zero in an effort to revive the ailing economy.
Japan's central bank is believed to have intervened for the second time in a week to combat the rising yen.
The FTSE 100 opened lower this morning, down 0.31% to 5,529, as miners saw falls across the board.
The manager of Jupiter's Japan Income fund says Japan's move yesterday to weaken the yen was welcome, but not enough to make investors truly positive on the country.
The yen is higher against major currencies today despite the Japanese Government unveiling a ¥920bn stimulus package and the BoJ extending an additional ¥10trn of lending to banks.