A look at economic developments around the globe

A look at economic developments and activity in major stock markets around the world

• By The Associated Press
• On 2:11 pm EDT, Wednesday October 14, 2009

A look at economic developments and activity in major stock markets around the world Wednesday:

SHANGHAI -- The slump in China's exports eased in September, a sign global trade is improving, as its foreign reserves rose to a record high.

Exports from the world's third-largest economy in September fell 15.2 percent year-on-year to $115.9 billion, the slowest decline in nine months, the customs agency said. Imports declined by 3.5 percent to $103 billion -- the smallest drop since imports started to slide in November last year.

Beijing's 4 trillion yuan ($596 billion) stimulus package has helped to revive growth through heavy spending on public works construction and other initiatives.

Meanwhile, China's central bank reported that the country's foreign reserves, the world's largest, rose to a record high $2.273 trillion by the end of September.

China's foreign reserves are ballooning as the central bank soaks up dollars generated by the country's trade surplus and investment inflows.

In Asian trading, China's Shanghai index jumped 34.34 points, or 1.2 percent, to 2,970.53, while Hong Kong's Hang Seng rose 419.12 points, or 2 percent, to 21,886.48.

Japan's market was the region's only major laggard with the Nikkei 225 stock average shedding 0.2 percent to 10,060.21 amid a stronger yen, which hurts exporters.

Elsewhere, Australia's market gained 1 percent, India's benchmark added 1.2 percent and Taiwan's key index advanced 1.3 percent.

DUBAI, United Arab Emirates -- The head of private equity giant Blackstone Group said the industry's worst days have passed as he confirmed plans to cash in on up to eight of the firm's companies in the near future.

And although concerns remain about the strength of economic growth, especially in the U.S. and parts of Europe, new investment opportunities are beginning to emerge, Blackstone Chairman and CEO Stephen Schwarzman said.

"It looks as if a bottom has been reached," he said, adding that the world's financial system is in "a radically different place" from its precarious state a year ago.

Renewed optimism from Blackstone and other big private equity firms reflects growing confidence on Wall Street that a lasting economic rebound is on its way.

In a sign of the new outlook, Blackstone is preparing to list shares for as many as eight of the companies it now owns.

BRUSSELS -- Industrial output in the 16 nations that use the euro rose 0.9 percent in August from a month earlier, the EU statistics agency said, suggesting the region's economy is recovering gradually.

Higher production of durable consumer goods, including household appliances, was the main force behind the monthly climb. Factories are making more big-ticket items in the hope that consumers are more willing to spend.

But the picture is mixed: production of goods for industry, such as machine parts, rose only slightly in August. The output of nondurable goods -- mostly food -- fell 1.3 percent.

TOKYO -- Japan's central bank kept its key interest rate unchanged at 0.1 percent and upgraded its assessment of the world's No. 2 economy, citing improvements in manufacturing and exports.

The unanimous and widely expected decision came at the end of the Bank of Japan's two-day policy board meeting. The central bank has kept its key rate unchanged at near zero since December, when it cut the rate from 0.3 percent, as it tries to nurture an economic recovery.

Japan eked out its first quarter of growth in the April-June period after a yearlong contraction, but unemployment remains near a record high and salaries have been falling.

PARIS -- French bank Credit Agricole said it will pay off euro3 billion ($4.5 billion) in emergency government funding provided to bolster the banking sector last year.

Credit Agricole is the third leading French bank to say it is repaying the aid, after BNP Paribas and Societe Generale launched rights issues this month to pay off the money.

Credit Agricole said it will pay of the entirety of its state aid on Oct. 27, thanks to strengthening credit markets and the "financial solidity" of Groupe Credit Agricole.

In European markets, the FTSE 100 index of leading British shares closed up 2 percent at 5,241.67, while Germany's DAX jumped 2.5 percent to 5,854.14. The CAC-40 in France was 1.6 percent higher at 3,862.63. All three closes were the highest for around a year.

SEOUL, South Korea -- Central banks should fight the urge to raise interest rates until the global economy shows stronger signs of recovery and joblessness begins to decline, Nobel Prize-winning economist Paul Krugman said.

His remarks come amid a debate over "exit strategies" -- or when the extraordinary measures such as ultra low interest rates and other financial and economic support measures put in place to fight the global economic crisis should start being withdrawn.

LONDON -- Unemployment in Britain was 7.9 percent in the three months to August, the Office for National Statistics said, compared to 7.6 percent in the three months to May and 5.8 percent in the June-August quarter a year earlier.

The number of people out of work was 88,000 higher than in the three months to May, the report said.

The agency said 2.47 million people were unemployed in the June-August period.

BRUSSELS -- The European Commission warned EU members that their economies are at high risk because soaring public debt may hurt their ability to meet future needs, such as paying pensions.

It told all EU nations that they could not rely on fast economic growth to reduce debt as Europe copes with an aging population where fewer workers will pay higher pension and health care for more retirees.

This means that governments have little choice but to make budget cuts and labor market reforms, it said.

It named thirteen nations as high-risk countries that need to set out "ambitious" budget programs: Britain, Spain, Greece, Ireland, Latvia, the Netherlands, Lithuania, Malta, Romania, Slovenia, Slovakia, the Czech Republic and Cyprus.

Rising debt in France, Italy, Hungary, Poland and Portugal also came in for criticism.

ATHENS, Greece -- Greece's unemployment rate jumped to 9.6 percent in July from 8.6 percent in June as the economic downturn continues to take its toll on the labor market. In July 2008, unemployment stood at 7 percent.

The total number of unemployed Greeks was 476,707 in July, 49,000 more than in June and 128,772 more than a year earlier.

HELSINKI -- Finland's annual inflation rate dropped in September to negative 1 percent, its lowest in more than half a century, the government statistics agency said.

Last month's year-on-year rate was down from 4.7 percent in September 2007 and the August rate of negative 0.7 percent.

BEIJING -- China, Russia and other members of a regional security group pledged to work together to combat the global economic crisis and find ways to increase cooperation on financial issues.

A document signed at the meeting of the Shanghai Cooperation Organization said the group's members should focus on a joint response to the global financial crisis and a common post-crisis strategy.

LONDON -- The International Monetary Fund is facing key political crunch points in its dealings across Eastern Europe even though it has done much to lose its previous reputation as an advocate of austerity.

Tuesday's collapse of Romania's center-right government led by Prime Minister Emil Boc, has raised concerns about adherence to conditions on the IMF's loan program with the country, just a month before presidential elections.

Though economic matters were not a direct reason for the government's collapse, Romania is now another potential headache for the IMF, alongside Ukraine, which faces turbulence ahead of Jan. 17 presidential elections, and Latvia, where the IMF is among lenders pushing for budget cuts.

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