MUNICH, Germany -- The German state of Bavaria's finance minister resigned, accepting his share of responsibility after BayernLB, a regional public-sector bank, said it would seek 5.4 billion euros ($7.2 billion) in federal government aid. Bavaria's state government owns half of BayernLB; the other half is held by municipally backed local banks. Germany's DAX closed down 213.34 points, or 4.5 percent, at 4,571.07.
PARIS -- France's prime minister says a newly created and state-backed refinancing company will start doling out urgent loans to French banks by the end of the week. The French refinancing firm known as SFRE was set up to support French banks short of liquidity amid the global financial crisis. The French government has pledged 40 billion euros ($54 billion) to provide banks with extra capital as part of an urgent plan to cope with the financial sector meltdown. The CAC-40 in France finished 177.22 points, or 5.1 percent, lower at 3,298.18.
MOSCOW -- Russian stocks shed the previous day's gains as shares in energy companies followed sliding oil prices down again. The U.S.-dollar denominated RTS index closed 7.2 percent lower at 665.8 points while the MICEX index dropped 3.7 percent to 628.1. Russian energy stocks fell sharply on the MICEX stock exchange with oil firms Tatneft and Transneft 7.5 and 5.1 percent lower, respectively. Gas giant Gazprom lost 6.3 percent.
SEOUL, South Korea -- South Korean stocks dropped sharply amid further heavy selling by foreign investors that has helped push share prices down 40 percent this year after years of strong gains. The Korea Composite Stock Price Index fell 61.51 points, or 5.1 percent, to 1,134.59. At one point, the Kospi fell as much as 8.4 percent before recovering some losses.
ISLAMABAD, Pakistan -- Pakistan sought help from the International Monetary Fund to avoid defaulting on billions of dollars in loans and skirt a financial crisis brought on by high fuel prices, dwindling foreign investment and soaring militant violence. Pakistani officials had previously said turning to the IMF would be a last resort.
TOKYO -- Japanese stocks tumbled as spreading pessimism over corporate earnings and a strengthening yen sent the benchmark index tumbling almost 7 percent. Stocks opened lower following an overnight retreat on Wall Street, but they widened losses in the afternoon on a flurry of bad news that aggravated fears about the global slowdown. Japan's Nikkei 225 stock average fell for the first time in three days, dropping 631.56 points, or 6.79 percent, to 8,674.69
BUENOS AIRES, Argentina -- Argentina's benchmark stock index plunged Wednesday as investors worried the president's plan to nationalize private pension funds would drain companies' access to private capital. The Merval index fell 10 percent, adding to 11 percent losses on Tuesday, when President Cristina Fernandez unveiled plans to take over $30.1 billion in private pension fund assets.
SHANGHAI, China -- Chinese shares sank on heavy selling of power producers and others reporting weaker-than-expected earnings. The benchmark Shanghai Composite Index fell 3.2 percent, or 62.71 points, to 1,895.82. The smaller Shenzhen Composite Index slipped 1.6 percent to 510.66. Declines were seen across the board, with energy and commodity-related shares falling sharply on expectations of weak demand. Chinese President Hu Jintao expressed concerns over the ailing U.S. financial system in a phone conversation with U.S. President George W. Bush, state media reported. China, which holds hundreds of billions of dollars in U.S. government bonds, has enacted a growing number of measures to stimulate economic growth as its crucial export sector suffers from downturns in the U.S. and Europe.
SAO PAULO, Brazil -- The Brazilian government announced it will allow two state-controlled banks to buy stakes in private financial institutions, hoping to limit damage from the global crisis. The Banco do Brasil and Caixa Economica Federal will be able to buy stakes in other banks, insurance companies and other private institutions needing aid, Finance Minister Guido Mantega said Wednesday. The institutions previously were not allowed to seek help from the state-controlled banks. Trading was automatically suspended for 30 minutes after the benchmark Ibovespa index dove 10 percent and fears mounted that a global recession could stall growth in Latin America's largest economy.
WASHINGTON -- World leaders will meet Nov. 15 in Washington to address the global financial crisis -- the first in a series of summits to mitigate what economists predict could be a long and deep downturn. In making the announcement, White House spokeswoman Dana Perino said the first meeting will focus on the underlying causes of the financial crisis, the global response and the principles that should guide any reforms. The summit will bring together leaders of the Japan, the United Kingdom, France, Germany, Italy, Canada and the United States, the European Union China, Brazil, India, Russia, South Korea and other major economies. She said the White House would seek input from the winner of the U.S. presidential election who will take office on Jan. 20.
MEXICO CITY -- Mexico's peso tumbled to 13.6 to the dollar and the stock market dropped 7 percent, despite the central bank's actions to stabilize the economy. The bank has been auctioning off reserves since the peso hit a record low of 14 to the dollar this month, after trading in early August at under 10 to the dollar. Mexico's central bank has vowed to auction $400 million every day at the previous day's closing price plus 2 percent, and has converted $12 billion to pesos since Oct. 8 in attempts to prop up the currency. The IPC index fell 7 percent to 1,415.93.
LONDON -- British Prime Minister Gordon Brown acknowledged for the first time Wednesday that the world economic downturn is likely to cause a recession in the United Kingdom, the U.S and other countries. Brown's comments during his weekly question-and-answer session at the House of Commons followed a warning Tuesday from Bank of England Governor Mervyn King that Britain is probably entering a recession as a result of a squeeze on pay, a lack of available credit and a likely prolonged slowdown in domestic demand. Later, Britain's FTSE 100 index of leading shares closed down 189.84 points, or 4.5 percent, at 4,040.89.
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