A look at economic developments and activity in major stock markets around the world Monday:

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DUBAI, United Arab Emirates _ The heavily indebted Dubai World is not guaranteed by the emirate's government, a top financial official from the city state said Monday, offering little direction to anxious investors on a day when stock markets in the United Arab Emirates registered a record fall on the back of Dubai's debt mess.

On the first day of trading since news of Dubai World's debt crunch became public, Dubai's main stock exchange dropped more than 7 percent while the Abu Dhabi exchange fell more than 8 percent _ the steepest fall in at least a year, according to brokers.

Driving the financial avalanche was Wednesday's announcement that conglomerate Dubai World would seek an at least six month reprieve on its $60 billion in debts, obligations amassed during years of a building spree that turned the desert emirate into the Middle Eastern version of Las Vegas.

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TOKYO _ Growth in Japan's factory output stumbled in October, falling short of expectations and adding another kink to the country's fragile recovery.

Industrial production _ a key barometer of Japan's economic health _ edged up 0.5 percent from September, the government said Monday. Output rose 2.1 percent in September from August.

The result missed a 2.5 percent increase forecast in a Kyodo News agency survey of economists, as well as the government's estimate for a 3.1 percent gain.

The government said factory production "continues to show an upward movement." But the underwhelming figure suggests that the world's second biggest economy may be losing steam as stimulus spending tapers off. Add to that fresh worries about deflation and a strong yen _ a dangerous duo that threatens to derail growth.

Even so, in Asia, nearly every market traded higher as concerns about a possible default in Dubai were soothed by a pledge from the United Arab Emirates' central bank that it will stand behind local and foreign banks. Japan's Nikkei 225 stock average climbing 264.03 points, or 2.9 percent, to 9,345.55. Hong Kong's Hang Seng added 687.00 points, or 3.3 percent, to 21,821.50 and South Korea's Kospi added 2 percent to 1,555.60.

Elsewhere, Shanghai's market climbed 3.2 percent, Australia's index was 2.8 percent higher and Taiwan's benchmark rose 1.2 percent.

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MUMBAI, India _ India's economy grew 7.9 percent in the July-September period, the fastest pace in six quarters, bolstered by government stimulus measures and rising industrial production.