A look at economic developments around the world

A look at economic developments and stock market activity around the world Friday:

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LONDON — The downturn in the euro-zone economy, particularly within the manufacturing sector, gathered pace in November. The closely watched purchasing managers index showed manufacturing slumped to a record low of 36.2 in November in the euro zone from 41.1 the previous month. Meanwhile, the equivalent estimate for the services sector also dropped to a record low, at 43.3 in November from October's 45.8. Meanwhile, home repossessions in Britain jumped 12 percent to 11,300 in the third quarter from the previous quarter, the Council of Mortgage Lenders said. FTSE 100 index of leading British shares closed down 94.03 points, or 2.4 percent, at 3,780.96.

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TOKYO — Japan's central bank, which kept its already low interest rates on hold Friday, looks like it may coast in neutral for a while despite signs of a prolonged economic slump at home and abroad. The October rate cut from 0.5 percent to 0.3 percent left Japan, which has the lowest interest rates among major economies, with little wiggle room to loosen policy in the future. The Bank of Japan said the economy was "increasingly sluggish," and it does not expect a turnaround anytime soon. Meanwhile, the Japanese finance minister said the U.S. shoulders a major chunk of the blame in triggering the global financial crisis. In corporate news, Honda Motor Corp., the second-largest automaker, said it will cut production in Japan and Europe by 61,000 vehicles. Japan's Nikkei 225 stock average rose 207.75, or 2.7 percent, to 7,910.79.

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BEIJING — Chinese stocks ended lower after a volatile session punctuated by speculation of a weekend interest rate cut and suspected government buying of shares. The benchmark Shanghai Composite Index fell 0.7 percent or 14.37 points to 1,969.39, for a 0.9 percent loss for the week. The smaller Shezhen Composite Index lost 0.8 percent to 552.46.

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PARIS — French consumer spending fell 0.4 percent in October from a month earlier, reversing September's gains and marking the biggest one-month decline in consumer spending since June, national statistics agency Insee said. Resilient French consumer spending helped France avoid recession in the third quarter, but October's figures show the trend is not holding up into the year-end as French companies shed jobs by the thousands.The CAC-40 in France ended down 99.16 points, or 3.3 percent, at 2,881.26.

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SEOUL, South Korea — South Korea's benchmark stock index surged, snapping an eight-day losing streak — its longest in more than five years — as investors bought financial and auto shares. The Korea Composite Stock Price Index jumped 55.04 points, or 5.8 percent, to close at 1,003.73.

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HONG KONG — Hong Kong stocks advanced, breaking a four-day losing streak, on bargain-hunting and speculation that China will cut interest rates over the weekend. The Hang Seng index jumped 360.64 points, or 2.9 percent, to 12,659.20.

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BERLIN — Some European Central Bank governors said borrowing costs may have to fall further to offset a worsening economic outlook and dropping inflation, making the chances of further interest-rate cuts more likely. The central bank to the 15 countries that use the euro last lowered its rate to 3.25 percent on Nov. 6. Germany, meanwhile, will have to borrow an extra 8 billion euros ($10 billion) next year, as it expects to spend more even while revenues slump, the parliamentary budget committee said. Landesbank Baden-Wuerttemberg, Germany's largest state bank, said it will receive a 5 billion euro ($6.3 billion) cash injection from its shareholders, while troubled German lender Hypo Real Estate said a government fund granted it 20 billion euros ($25 billion) in loan guarantees, which comes on top of a previous bailout to stabilize its business amid the financial turmoil. A German newspaper also said the country's economy could lose up to 215,000 jobs in 2009 amid the global economic crisis, citing a survey it compiled. Germany's DAX finished down 92.79 points, or 2.2 percent, at 4,127.41

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BRUSSELS, Belgium — The European Union's competition chief said that Germany and France should avoid entering a global "subsidy race" to bail out the ailing car industry. EU Competition Commissioner Neelie Kroes said the current rules already allow for plenty of aid to car companies for research and environmental technologies. Meanwhile, the European Commission president urged the 27 EU governments to boost public spending and provide tax breaks.

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AMSTERDAM, Netherlands — The Dutch government named former finance minister Gerrit Zalm as chief executive of the recently nationalized ABN Amro and Fortis banks and said the combination will not be privatized before 2011. The Netherlands' benchmark AEX index ended down 2.2 percent at 222.93.

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SINGAPORE — Singapore's economy skidded into a recession for the first time since 2001, the government said, warning that it could contract by up to 1 percent next year as a global slowdown saps export demand. The city-state's economy shrank 6.8 percent in the third quarter from the previous quarter.

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LIMA, Peru — President George W. Bush, struggling to get ahead of a global financial crisis, hopes to win more converts at the 21-nation Asia-Pacific Economic Cooperation summit here for an action plan aimed at showing governments have the will and the means to halt the turmoil.

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SAO PAULO, Brazil — The Ibovespa stock index was down 6.6 percent to 31,213.77, while Argentina's Merval slid 3.7 percent.

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