Stocks in Europe, Asia Decline

Stocks in Europe and Asia dropped led by companies most tied to the economy on concern U.S. plans to increase spending and shore up banks won’t be enough to revive growth., Bloomberg 2/10/2009 5:39:33 AM

Kazakhmys Plc lost 6.5 percent, leading commodity producers lower, as base metals slid and President Barack Obama said the world’s largest economy faces a full-blown crisis.” Samsung Electronics Co., which gets 14 percent of its sales from the Americas, slid 1.3 percent in Seoul. Nordea Bank AB tumbled 3.5 percent after the biggest Nordic lender by market value said it would raise capital after loan losses jumped.

The MSCI World Index fell for the first time in six days, losing 0.3 percent to 873.97 at 12:52 p.m. in London. The gauge of 23 developed nations has climbed 4.2 percent this month amid speculation the deteriorating U.S. economy would force Congress to reach a compromise on Obama’s stimulus package.

Asian stocks fell for a second day, led by materials and consumer companies, as Japanese bond risk at a record and signs of declining profit countered optimism that U.S. stimulus measures will ease the financial crisis.

The same number of stocks rose and fell on the MSCI Asia Pacific Index, which lost 0.1 percent to 83.14 at 7:29 p.m. in Tokyo. The gauge has fallen 7 percent this year, extending 2008’s record 43 percent decline as the world’s biggest economies sank into recession.

Japan’s Nikkei 225 Stock Average lost 0.3 percent to 7,945.94. Australia’s S&P/ASX 200 Index slipped 0.6 percent. China’s Shanghai Composite Index climbed 1.8 percent as inflation cooled, fanning speculation the central bank may lower interest rates.