S Presidentelect Barack Obama to rescue the U

Flows were cut to Bulgaria, Turkey, Macedonia, Greece andCroatia, while Austria and the Czech Republic reported sharpfalls. STIMULUS PLANS But investors chose to focus on the positive, anticipating anew economic stimulus package worth up to 50 billion euros($67.4 billion) in Germany and an expected $775 billion planfrom U.S President-elect Barack Obama to rescue the U.S.economy. South Korea said on Tuesday it aimed to create almost142,000 jobs this year through infrastructure and environmentalprojects, part of a five-year, $38 billion plan to generatealmost 1 million jobs. ID:nSEU000133 Chile announced a $4 billion stimulus package based onpublic spending on infrastructure, subsidies and tax rebates.ID:nN05399458 Hopes for a global economic recovery helped European andAsian shares rise for their sixth and seventh consecutivesessions, respectively, while the dollar climbed stronglyagainst major currencies. "Growing expectations for the administration of Obama aremaking investors that much more willing to take risks, and Ithink we're also seeing more buying by foreign investors," saidHideyuki Ishiguro, supervisor at the investment advisorydepartment of Okasan Securities in Tokyo.

MSCI's All-Country World index .MIWD00000PUS has jumped 25percent since hitting a five-year low in late November. POOR DATA Market optimism is running ahead of economic indicators,however, which remain poor. Britain's Nationwide Building Society said house prices inthe world's fifth-biggest economy fell another 2.5 percent inDecember to make 2008 the worst year on record. ID:nLAG003162 Consumer morale slumped in December in both BritainnL5246817 and France nL573894 as households worried aboutrising unemployment.

fell 36 percent in December, figuresshowed on Monday, to close out the weakest year since 1992 inthe world's biggest market. ID:nL5118725 "We see little to indicate a near-term improvement in eitherfinancial market conditions or economic activity," said Fordeconomist Emily Kolinski Morris ID:nN05383052 Toyota, which saw its worst U.S. monthly sales decline sinceat least 1980, said it would suspend operations at 12 vehicleand parts plants in Japan for six days next month and five inMarch in response to declining demand. ID:nT158 The cuts come on top of a three-day suspension at domesticplants this month and after the company warned two weeks agothat it would post its first-ever annual operating loss.

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China relies on strong growth to create jobs for itsmillions of migrant workers and graduates, but risks an upsurgein protests and riots in 2009 as rising unemployment stokesdiscontent, a state-run Outlook (Liaowang) Magazine said onTuesday. ID:nPEK5709 "Without doubt, now we're entering a peak period for massincidents," a senior Xinhua reporter, Huang Huo, told themagazine, using the official euphemism for riots and protests. Researchers at the country's central bank forecast China'seconomy would probably grow a healthy 8 percent this year, incontrast to many independent analysts' predictions for a muchsharper slowdown. ID:nPEK2682 (Additional reporting by Reuters bureaux worldwide, editing byWill Waterman) Stocks Bonds China Russia.