Japan announced its own measures to support its stock market and financial system, following the G7 industrial nations' accord on the global crisis.

Japan's Nikkei index posted an impressive rally Tuesday, surging to a single-day record gain of 14.2%, at least partially sparked by anticipation of U.S. government investment in its ailing banks.

European governments face a new challenge of how to pay for their bold plans to bail out their banking systems.

Hong Kong moved to restore confidence in the banking system by fully guaranteeing all bank deposits and setting up a new facility to provide capital to lenders.

Moving to restore confidence in Hong Kong's banking system, the government said it will fully guarantee all bank deposits and set up a new facility to provide capital to banks.

Iceland's stock market plummeted 76% after reopening from a three-day halt Tuesday, as the government kept in place new currency controls to curb capital exports.

Sentiment among German financial analysts and institutional investors slipped in October, a sign of deep concern about the impact of the financial crisis, a survey from the Center for European Economic Research, or ZEW, showed.

Japan's central bank said Tuesday it had expanded the scope of its agreement with the U.S. Federal Reserve, allowing it to provide more cash to financial institutions to keep money markets operating smoothly.

The government's plan to take ownership stakes in banks is an exceptional step, but not an unprecedented one.

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