In the UK the FTSE 100 Index has advanced for a second day, adding 17 points, or 0.3%, to 5391.5 led by Marks & Spencer Group after the country's biggest clothing retailer said quarterly revenue gained for the first time in two years.
Marks & Spencer has climbed 13.75p, or 3.6%, to 397.75p, as sales at outlets open at least a year increased by 1.3% in the second quarter.
Royal Bank of Scotland Group has also made gains following reports it may be among four short-listed bidders for 18 Hilton Group hotels. The company’s share price is up 18p, or 1.1%, to 1,612p.
In Japan, the Nikkei 225 Stock Average added 328.97 points, or 2.5%, to 13,556.71, at its close a short time ago, rising the most since October last year. Banks such as Mitsubishi UFJ Financial Group led the rally after a government report showed machinery orders jumped 8.2% in August adding to evidence that economic growth will bolster earnings.
Mitsubishi UFJ jumped 110,000 yen, or 8.2%, to 1.45 million, after reports the bank was planning to repay public funds earlier than it thought.
Mizuho Financial Group, Japan's second-largest bank, gained 42,000 yen, or 6.2%, to 721,000, while Sumitomo Mitsui Financial Group, the third-largest lender, advanced 52,000 yen, or 5.3%, to 1.04 million.
Among machinery stocks, Komatsu, the world's No.2 construction equipment maker, added 72 yen, or 5%, to 1,512. Mitsubishi Heavy Industries, Japan's largest heavy machinery maker, climbed 16 yen, or 4.2%, to 402, while JGC, Japan's biggest engineering company, gained 98 yen, or 5.2%, to 1,967.
Toyota climbed 140 yen, or 2.8%, to 5,240. The company plans to increase spending 15% to a record 1.25 trillion yen as demand for its cars increases.
Nintendo, the world's biggest maker of hand-held video games, dropped after saying that first-half sales unexpectedly fell because it sold fewer GameCube home consoles and less game software in North America. The company trimmed its full-year sales goal by 3.8% as it fell 370 yen, or 2.8%, to 12,970.
Sanyo Electric, the world's third-largest maker of digital cameras, dropped 7 yen, or 2.4%, to 285, after announcing the resignation of its chief financial officer over disagreements on management policy. The company is also cutting jobs and closing factories and may sell its Osaka headquarters building in a bid to curb costs.
In the US, stocks slid as the Dow Jones Industrial Average dropped 53.55 points, or 0.52%, to end at 10,238.76. The Dow hit its lowest levels in about five months, after General Motors said auto-parts supplier Delphi's bankruptcy filing could cost it as much as $12bn.
Delphi, the No.1 US auto-parts supplier, filed for bankruptcy on Saturday, leading GM, which spun off Delphi in 1999, to warn of the possibility of costly supply disruptions. GM shed 9.9%, or $2.81, to $25.48. Delphi shares fell $0.79 to $0.33 cents.
Dana, a rival auto-parts maker, fell 34.3% or $3.15, to $6.04 after it said it will restate earnings for 2004 and the first half of 2005 and delay posting third-quarter 2005 earnings, because of accounting problems.
Exxon Mobil was one of the biggest drags on the Dow as it fell 1.9%, or $1.10, to $58.50, after crude oil prices ended the day down.
Among the few gainers were IBM, whose shares rose 0.93%, or $0.75, to $81.25 after Citigroup upgraded its rating on IBM to "buy" from "hold." Wal-Mart Stores, was another winner as it gained 1.2%, or $0.51, to $44.54.IFAonline
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