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Japan Stock Turmoil Adds Economic Pain Amid Reactor Fires

Japan’s failure to contain radiation risk from a crippled nuclear power plant, and the resulting turmoil in stocks, threatened to worsen damage to the economy from last week’s earthquake and tsunami.

The Nikkei 225 Stock Average fell 16 percent the past two days, the steepest tumble since 1987, before recouping some of the loss today with a 5.7 percent advance by the close in Tokyo. Bank of America-Merrill Lynch yesterday further cut its forecasts for gross domestic product, which shrank last quarter, and JPMorgan Chase & Co. may do the same.