(Reuters) - Fears about the impact of Japan's devastating earthquake and tsunami dominated trading on Wall Street on Monday as indexes tracked global equity markets lower, with volatility expected in the days ahead.

A second hydrogen explosion rocked a stricken nuclear power plant in Japan, sending authorities scrambling to avert a meltdown.

"The market is clearly focused on Japan," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey. "It is the horror of the human toll and secondarily what it means for global demand," said Kenny.

The crisis at Japan's nuclear plants created doubts about the growth prospects of the industry.

Among companies affected the most were those with exposure to Japan and the nuclear industry. General Electric Co (GE.N), which has combined nuclear ventures with Hitachi Ltd (6501.T), fell 2 percent to $19.93.

Shaw Group Inc (SHAW.N) fell 16 percent to $32.20.

The Market Vectors uranium and nuclear energy exchange traded fund (NLR.P) fell more than 17 percent, while the Global X Uranium ETF (URA.P) fell 17.5 percent.

Insurers with likely exposure to Japan lost ground. Shares of U.S. insurer Aflac Inc (AFL.N) fell 2.8 percent to $54, while AIG (AIG.N) lost 1.2 percent to $36.90.

The Dow Jones industrial average .DJI was down 36.86 points, or 0.31 percent, at 12,007.54. The Standard & Poor's 500 Index .SPX was down 4.86 points, or 0.37 percent, at 1,299.42. The Nasdaq Composite Index.IXIC was down 1.46 points, or 0.05 percent, at 2,714.15.

Japanese stocks fell 6.2 percent as investors expected the disaster to take an economic toll. Trading in other stock markets was cautious but steady, although tracking lower in Europe through the morning.

Japanese ports handling as much as 7 percent of the country's industrial output sustained major damage, disrupting global supply chains and causing billions of dollars in losses, industry officials said.

Japanese shares traded in New York also fell. Toyota Motor Co (7203.T)(TM.N), which said it would suspend production at all its Japanese car plants, dropped 5.3 percent to $81.14. The iShares MSCI Japan index exchange traded fund (EWJ.P) fell 6.9 percent.

The Chicago Board Options Exchange volatility index, or VIX, rose 7.4 percent to 21.56, a sign investors expect additional volatility in coming days.

(Editing by Padraic Cassidy)

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