TOKYO, OCT. 21 (WEDNESDAY) -- The Tokyo stock market rallied strongly today after a record-setting 15 percent loss Tuesday, when the Nikkei average of 225 issues dropped an unprecedented 3,836.48 yen, more than four times greater than any previous one-day loss.

After a day of active trading the Nikkei average closed 2,037.32 points up over Tuesday. It was the largest single-session rise on record and a recovery that securities analysts said was based on the small gains registered on Wall Street Tuesday. However, analysts said there was still much uncertainty on the Tokyo exchange, with many stocks not trading and investors mostly adopting a wait-and-see attitude.

From Asia to Western Europe and Canada, other markets also skidded downward on Tuesday. Sharp losses were reported in Manila, Taiwan, Seoul, Singapore and Malaysia. In Sydney, stocks fell a record 24.9 percent, cutting $39 billion from the value of Australian issues.

In London, share prices took an early plunge, falling more than 300 points on the Financial Times 100 index by midday. Despite an afternoon rally, the index closed at 1801.6, down 250.7 points, or 12.2 percent, from Monday.

Securities analysts in Tokyo said they expect the Japanese market to continue taking its cue from Wall Street, as it has since late last week when the Tokyo exchange receded from an all-time high last Wednesday and began to plummet on word of the New York stock market crash.

"I think it's going to depend very much on Wall Street. Wall Street caused this. It's in New York that people had a rush of blood to the head," said Simon Smithson of Kleinwort and Benson, a British securities firm with offices here.

Other analysts said the past volatility of the Tokyo exchange was one reason that financial leaders, investors and others here have appeared less panicked by the market's sharp drop than investors in New York and elsewhere.

"The Japanese stock market has always been more volatile than the U.S. market, so this huge drop is still being seen as not that odd," said one Nomura Securities analyst. Last summer the market bounced up and down, shedding and then picking up 2,000 yen or more. Those swings occurred over the course of several weeks or more, however.

Analysts said that because many institutional Japanese investors are awash in cash, they have a cushion to absorb stock losses without becoming too frantic, although it was unclear how long that might last.

Financial leaders, including Finance Minister Kiichi Miyazawa, appeared optimistic that a global collapse of financial markets was not in the offing.

Miyazawa, dismissing suggestions that the market was heading for a major crash that might trigger a worldwide depression, said the decline in stock prices was manageable.

Miyazawa blamed the fall on concern over higher interest rates, renewed inflation and a further weakening of the dollar, and said the economies of the United States and Japan were sound.

Senior British government and market figures also emerged to urge calm and caution, insisting that Britain's economy remained one of the healthiest in the world.

Chancellor of the Exchequer Nigel Lawson called the steep two-day drop in London a "grotesque overreaction" to activity on Wall Street. He put the blame for the overall international fall in investor confidence squarely on U.S. Treasury Secretary James Baker.

"The scale of the fall was very great," Lawson said, "and that, I think, was partly due to a statement that had been made by senior figures on the other side of the Atlantic, which caused considerable concern about economic policy."

Lawson said he was referring to Baker's statement last week that the United States might reexamine the February agreement that stabilized currencies among the major western industrialized nations. Baker accused West Germany of violating the spirit of the agreement by pushing up domestic interest rates.

Baker and West German Finance Minister Gerhard Stoltenberg last night reached what Lawson called "genuine agreement and harmony and commitment" to maintaining the agreement.

"I think generally the American politicians and financial experts have realized that off-the-cuff remarks have not done the market any good at all," said one senior dealer.

Asked if he had plans to suspend trading, London Stock Exchange Chairman Nicholas Goodison said, "I wouldn't dream of suspending the market. A market is a market, and it should remain open to all investors if it possibly can."

In Hong Kong, officials suspended trading until next week, citing steep losses there and in New York.

Manila's stock market, which had shown signs of becoming "coup proof" in recent weeks as it grew despite continued political unrest, today plunged a record 11.79 percent, or 105.49 points.

President Corazon Aquino, speaking to a business luncheon, prefaced her prepared remarks by telling the worried business leaders that her government was seeking more information on how the crash might affect the Philippines' precarious position as a trader in the world economy and a heavily indebted nation sensitive to fluctuations in interest rates.

"We will monitor these developments closely and will continue to hope that they do not precipitate large declines in economic activity around the world," she said.

In Paris, French Minister of Industry, Post and Tourism Alain Madelin shrugged off the crash, saying, "The fundamental cause is the international stock market crisis, which has been imported into France . . . The movements of the French economy itself are not at stake, so we can remain calm."

The French market closed up .79 percent after erratic trading Tuesday, United Press International reported.

The Toronto Stock Exchange, which suffered a record 11 percent plunge Monday, dropped another 7 percent and experienced delays of two hours in posting figures because of unprecedented trading volume. In Ottawa, Finance Minister Michael Wilson sought to calm widespread worries, especially about the effect on pension funds invested in Wall Street.

An Israeli investor threatened to blow up the Tel Aviv Stock Exchange after officials refused to halt frantic trading, Reuter reported.

Officials said prices of stocks and bonds were falling by about 10 percent. Police found no explosives. Correspondents Edward Cody, Herbert H. Denton, Karen DeYoung and Keith B. Richburg contributed to this report.