By Adam Haigh Oct. 16 (Bloomberg) -- Stocks plunged around the world, with benchmark indexes from Tokyo to Budapest falling more than 6 percent, on growing concern bailout plans in the U.S. and Europe will fail to avert a global recession. Japan's Nikkei 225 Stock Average sank 11 percent, and South Korea's Kospi Index slumped 9.2 percent. Oil dropped to a 13- month low, extending its decline from a July record to more than 50 percent. The yen climbed to 133.82 per euro, nearing a three- year high, as investors shunned higher-yielding assets. ``There has been a realization recession has arrived and it's going to be deep-seated,'' David Buik, a market analyst at BGC Partners in London, said in a Bloomberg Television interview. ``The banking-rescue act seems to have gone on the back burner.'' The MSCI World Index lost 3 percent to 921.46 at 8:05 a.m. in London, declining for the second day and trimming gains this week to 1.2 percent. Europe's Dow Jones Stoxx 600 Index declined 4.7 percent, while the MSCI Asia Pacific Index lost 8.5 percent. Futures on the Standard & Poor's 500 Index fell 0.6 percent. BHP Billiton Ltd. lost 11 percent and Rio Tinto Group slipped 13 percent on speculation the slowdown will slash demand for metals. Credit Suisse Group AG dropped 6.4 percent after reporting a third-quarter loss of 1.3 billion francs ($1.13 billion). Royal Dutch Shell Plc, Europe's biggest oil company, sank 6.7 percent. Hungary's BUX Index lost 6.3 percent, extending yesterday's 12 percent tumble. The European Central Bank will lend as much as 5 billion euros ($6.7 billion) to the Hungarian central bank to help revive the local credit market. U.S. stocks sank the most since the crash of 1987 yesterday on the biggest drop in retail sales in three years and a slump in New York manufacturing. Almost half of the S&P 500's decline came in the last 50 minutes of trading. Yen Rallies The yen rose to 133.82 per euro from 134.93 late yesterday in New York. It climbed to 132.24 on Oct. 10, the strongest level since June 2005. The cost of protecting European corporate bonds from default rose, according to traders of credit-default swaps. Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-risk, high-yield credit ratings increased 30 basis points to 740, according to JPMorgan Chase & Co. Europe's Stoxx 600 has lost 40 percent this year as concern the seizure in credit markets will trigger a global recession erased $25 trillion in value from stocks worldwide. Financial firms reported $637 billion in losses and writedowns from mortgage-related investments since the beginning of 2007. BHP Billiton, the world's largest mining company, sank 11 percent to 812 pence. Rio Tinto, the third-biggest, fell 13 percent to 2,042 pence. Copper slid 5.5 percent on the London Metal Exchange, declining with other metals including lead, nickel, tin and zinc. Stake Frozen Separately, the Daily Telegraph reported Aluminum Corp. of China Ltd.'s 8 billion pound ($13.8 billion) stake in Rio Tinto Plc has been frozen by the liquidators of Lehman Brothers Holdings Inc., without saying where it got the information. Shell, Europe's biggest oil producer, fell 6.7 percent to 1,300 pence. Total SA, the regions' third-largest, lost 6.3 percent to 34.27 euros. Crude oil for November delivery fell as much as $1.58, or 2.1 percent, to $72.96 a barrel in after-hours trading on the New York Mercantile Exchange. Credit Suisse sank 6.4 percent to 42.96 francs after reporting a loss of 1.3 billion francs in the three months ending Sept. 30 after a pretax loss of 3.2 billion francs from its investment banking division. It had writedowns of 2.4 billion francs in leveraged finance and structured products. To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net

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