The Nikkei Stock Average plummeted Thursday to close at its lowest level in more than 15 years.
The fall came despite the Bank of Japan's interest rate cuts the previous day.
The benchmark 225-issue Nikkei, which fell 176.32 points Wednesday, dived a further 201.88 points, or 1.57 percent, to 12,681.66, posting its lowest close since November 1985.