Two Asian powerhouse economies felt the sting of the global financial crisis as India cut its main short-term lending rate and China said it was bracing for a slowdown.
Meanwhile, British Prime Minister Gordon Brown travelled to the Gulf in an appeal to oil-rich states to pour money into stabilizing the world financial system and help afflicted countries.
Other countries also took steps to shore up their own economies. Russia moved 170 billion rubles (€5.03bn) from a national fund to a state bank, and Russian shares rose in a special session today.
German Chancellor Angela Merkel urged German banks to tap a €500 billion government rescue package. She and Mr Brown will meet in London on Thursday.
The developments in the worst financial crisis in eight decades followed signs in the past week that world markets were stabilizing, with interbank rates falling and US stocks posting their best week in 34 years.
But in Shanghai, a senior Bank of China executive said the impact of the crisis on China has started to appear.
China has seen a sharp slowdown in industrial profit growth and fiscal income, Executive Vice President Zhu Min said.
The global economy will likely enter recession next year with the United States, Europe and Japan posting negative growth, he said.
In India the central bank cut its main lending rate for the second time in as many weeks to ease a cash squeeze and spur economic growth.
Analysts said the surprise move showed Indian concern that strains on its economy were quickly becoming more severe.
