Stocks Fall in Europe, Asia


Stocks declined in Asia and Europe, with benchmark indexes from Tokyo to Budapest falling more than 4 percent, on growing concern bank bailout plans in the U.S. and Europe will fail to avert a global recession.

The MSCI World Index lost 2.4 percent to 928.01 at 1:33 p.m. in London, declining for the second day and trimming this week's gain to 1.9 percent. Europe's Dow Jones Stoxx 600 Index fell 2.2 percent, while the MSCI Asia Pacific Index lost 8.5 percent.

U.S. index futures rose after stocks yesterday lost the most since the 1987 crash. Futures on the Standard & Poor's 500 Index added 15.5 points, or 1.7 percent, as a gauge of borrowing costs declined to a four-year low and Citigroup Inc. reported a smaller loss than analysts estimated.

Japanese stocks plunged the most in two decades. The Nikkei 225 Stock Average declined 1,089.02, or 11 percent, to close at 8,458.45 in Tokyo, the second-steepest plunge in its 59-year history. T

U.K. stocks slumped for a second day as investors speculated a global bailout of banks has failed to stave off recession. BHP Billiton Ltd., Rio Tinto Group and Royal Dutch Shell dropped as oil and metals prices decreased. The benchmark FTSE 100 slipped 123.04, or 3 percent, to 3,956.55 at 12:35 p.m. in London.

German stocks
dropped for a second day as concern mounted that bank bailouts in the U.S. and Europe will fail to prevent a recession. The benchmark DAX Index dropped 119.7, or 2.5 percent, to 4,741.93 as of 12:37 p.m. in Frankfurt

Australia's stocks
dropped amid growing evidence the nation's 17-year economic expansion will end, as Ford Motor Co. said it will cut 450 local jobs and National Australia Bank Ltd. said profit fell. Australia's benchmark S&P/ASX 200 Index plunged 6.7 percent to 4,013.40 at the close, eroding a rebound from a 16 percent loss last week, the worst in its history dating back to 1992.

China's stocks fell, driving the benchmark index to a 22-month low, as commodity producers and airlines declined on concern the global economy is headed for a recession that will curb Chinese exports. The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, sank 93.45, or 4.9 percent, to 1,820.90 at the close, the lowest close since December 2006

Indian stocks
fell, with the benchmark Sensitive Index declining to its lowest in almost a week, after U.S. retail sales fell more than estimated. The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 227.63, or 2.1 percent, to 10,581.49. It earlier fell as much as 7.3 percent.

Russian stocks
fell to the lowest in three years, led by OAO Rosneft and OAO Lukoil, as sinking oil prices hurt the outlook for Russia's economy and equities dropped around the world. The Micex Index fell 11 percent to 616.72 at 4:12 p.m. in Moscow, the lowest since June 2005. The Micex Stock Exchange halted trading for an hour because of the slump.


TradingEconomics.com, Bloomberg.com
10/16/2008 6:04:25 AM