Time Warner Inc. declined 1.9 percent in Germany as the world's largest media company lowered its full-year profit forecast. ArcelorMittal, the biggest steelmaker, slumped 17 percent after saying it will slash production as prices tumbled. The dollar gained against the euro and Treasuries fell on expectations Obama's victory and Democrat gains in Congress will speed passage of spending plans.
Europe's Dow Jones Stoxx 600 Index lost 2.2 percent to 228.42 as of 12:55 p.m. in London. Futures on the Standard & Poor's 500 Index decreased 1.5 percent before a report that may show service industries in the U.S. shrank in October.
National benchmark indexes fell in 16 of the 18 western European markets. The U.K.'s FTSE 100 slid 2.3 percent and France's CAC 40 lost 2.4 percent as BNP Paribas SA dropped after the bank said third-quarter profit fell 56 percent. Germany's DAX decreased 1.7 percent with Q-Cells SE tumbling 15 percent after Deutsche Bank recommended selling the stock.
Japan stocks extended a record rally from a 26-year low on speculation U.S. president-elect Barack Obama will take additional steps to spur economic growth and as a rise in commodities prices sparked gains by resource companies. The Nikkei 225 Stock Average rose 406.64, or 4.5 percent, to close at 9,521.24 in Tokyo.
Australian S&P/ASX 200 Index advanced 121.50 points, or 2.9 percent, to 4,336.60 at the close in Sydney, its highest since Oct. 8.
Indian stocks dropped for the first time in six days, led by Reliance Industries Ltd. and Tata Steel Ltd. and on speculation recent gains were overdone. The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, lost 511.11, or 4.8 percent, to 10,120.01.
China's stocks rose the most in three weeks, led by financial and energy companies, on speculation Barack Obama will take steps as U.S. president to bolster the world's largest economy and as oil and metals prices jumped. The CSI 300 Index, tracking yuan-denominated A shares on China's two exchanges, gained 63.66, or 3.9 percent, to 1,691.42 at the close, the biggest advance since Oct. 13.
Russian stocks rose for a sixth day, forcing a halt in trading, on higher oil prices and speculation that Barack Obama's presidency will boost the country's relations with the U.S. The 30-stock Micex Index surged as much as 14 percent, poised for a sixth consecutive day of gains, the longest since President Dmitry Medvedev's inauguration in May.