London shares closed weaker on Friday as investors focused on upcoming US budget talks needed to avert a fiscal crisis that could see hundreds of billions of dollars in automatic tax hikes and spending cuts tip the world's biggest economy into recession.

European stocks fell Friday before key US budget talks as US President Barack Obama attempts to avert a looming "fiscal cliff" of automatic taxation hikes and spending cuts in the world's biggest economy.

Asian markets were mixed Friday as eurozone and US fiscal woes continued to dent confidence, but Tokyo posted strong gains for a second straight session as the yen weakened further.

Hong Kong's economy returned to modest growth in the third quarter, helped by improving exports and rising domestic consumption, officials said Friday.

A crucial meeting of eurozone finance ministers next week will be key to getting Greece "back on its feet", IMF chief Christine Lagarde said Friday, as she cut short her visit to Asia to attend the talks.

Europe's main stock markets retreated on Thursday following news that the 17-nation eurozone economy fell into recession in the third quarter as a result of the region's sovereign debt crisis, dealers said.

London shares closed in the red on Thursday following news that the 17-nation eurozone economy fell into recession in the third quarter as a result of the region's sovereign debt crisis.

Europe's main stock markets slid on Thursday following news that the 17-nation eurozone economy fell into recession in the third quarter as a result of the region's sovereign debt crisis, dealers said.

The eurozone tipped back into recession for the second time in just three years in the third quarter, data showed Thursday, making it even harder to solve the debt crisis eating away at the bloc's foundations.

More than 800,000 people joined vast demonstrations against austerity across Spain, capping a day of Europe-wide strikes and rallies, the government said on Thursday.

Spain announced Thursday it has moved into a second year of a job-killing recession, a day after millions joined anti-austerity strikes and vast protests.

The 17-nation eurozone was in recession for the second time in three years in the third quarter, official data showed Thursday, as the debt crisis exacts a heavy toll and the outlook darkens steadily.

Spain's announced Thursday it has moved into a second year of a job-killing recession, a day after millions joined anti-austerity strikes and vast protests.

The eurozone debt crisis is taking its toll on Germany, Europe's largest economy, which ground to a near halt in the third quarter of the year, official figures showed on Thursday.

A job-killing recession kept its grip on Spain in the third quarter of 2012, data showed Thursday, a day after a general strike and vast anti-austerity protests.

US President Barack Obama told opposition Republicans they would have to accept tax increases for the rich if the country was to avoid going over the fiscal cliff.

U2 star Bono declared corruption "the biggest killer of them all" on Wednesday at the World Bank as he expressed concern over the "fiscal cliff" facing the US budget.

Hundreds of thousands of protesters swamped Madrid in a mass outcry against austerity Wednesday, capping strikes across southern Europe that boiled over into sporadic clashes.

The film industry in Greece is just as cash-strapped as the government but budget constraints and the dire recession choking the country are minting a new generation of filmmakers whose work is gaining increasing recognition.

The Bank of England slashed its forecast for UK economic growth next year to about 1.0 percent on Wednesday, owing to the sovereign debt crisis in key trading partner the eurozone.