Global Stocks Fall

Stocks fell in Europe and Asia and U.S. index futures dropped, extending the worst slump in global shares in more than three decades, after Japan unexpectedly slid into a recession.

Santander SA, Spain's biggest bank, and BNP Paribas SA of France slipped more than 6 percent. HeidelbergCement AG tumbled 16 percent on concern the cement maker's owner may have to sell shares to help prop up an investment company. Mitsubishi Estate Co., Japan's largest developer by market value, sank 5.4 percent.

The MSCI World Index lost 0.7 percent to 872.89 at 12:37 p.m. in London, pushing this year's retreat to 45 percent. Japan's economy unexpectedly shrank in the third quarter, entering the first recession since 2001, while Britain's biggest business lobby said the U.K. slump may be deeper than earlier predicted.

Europe's Dow Jones Stoxx 600 Index declined 2 percent, with Tesco Plc sliding 4.1 percent after JPMorgan Chase & Co. recommended selling shares in Britain's biggest retailer. The MSCI Asia Pacific Index decreased 0.4 percent. Futures on the Standard & Poor's 500 Index slipped 0.9 percent.

Japan stocks slightly  rose, led by drug and rail companies, after the nation's slip into recession lifted demand for companies relatively insulated against a slowdown, and oil's drop boosted the profit prospects of manufacturers. The Nikkei 225 Stock Average rose 60.19, or 0.7 percent, to close at 8,522.58 in Tokyo, after losing as much as 2.9 percent and rising 3.6 percent.

Indian stocks fell, with the benchmark Sensitive Index declining for a fourth day, on concern measures by the central bank to increase liquidity may fail to boost growth. HDFC Bank Ltd. led declines. The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, fell 94.41, or 1 percent, to 9,291.01.

Australian S&P/ASX 200 Index slipped 95.10 points, or 2.5 percent, to 3,653 at the close in Sydney, the lowest since Sept. 28, 2004.,
11/17/2008 5:28:36 AM