A look at global economic developments

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

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SHANGHAI — Economic growth and inflation data due out Thursday will show whether China's balancing effort to keep growth fast and prices under control is working — or if more needs to be done to cool a stimulus-fueled boom.

Beijing raised fuel prices Wednesday in a show of confidence about its ability to keep inflation in check. But analysts are watching Thursday's announcement of first-quarter gross domestic product for signs an interest rate hike or more drastic action is needed to prevent overheating.

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LONDON — The industrial recovery in the 16 countries that use the euro appears to be gathering steam. Output from the sector spiked by way more than anticipated during February.

Meanwhile, the German economy, Europe's biggest, is likely to grow by 1.7 percent this year and 1.8 percent in 2011, the German Institute for Economic Research said.

European shares rose. The FTSE 100 index of leading British shares rose 0.6 percent, Germany's DAX rose 0.8 percent and the CAC-40 in France was 0.6 percent higher.

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SINGAPORE — Singapore's economy grew at its fastest rate in at least 35 years in the first three months of 2010, bouncing back from a contraction the previous quarter as manufacturing activity more than doubled.

Singapore's main stock index led gainers, advancing 1.6 percent after the government said the economy grew an annualized 32 percent in the first quarter.

South Korea's index jumped 1.5 percent, Australia climbed 0.9 percent, Japan rose 0.4 percent, Malaysia added 0.2, while Indonesia and Hong Kong were little changed.

China's benchmark stock index gained 0.2 percent.

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BRUSSELS — The European Union's budget rules will to be sharpened to try and prevent countries from following Greece's flagrant flouting of debt and deficit limits, the EU's top economy official said.

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VIENNA — OPEC expects less demand for its oil this year, reflecting a world economy that's still struggling.

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BEIJING — Cabinet officials acknowledged foreign companies face problems in China but said the government is improving conditions, in a new effort to defuse tensions over complaints foreigners are being squeezed out of Chinese industries.

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BERLIN — Germany's parliament will be allowed to have the final say over whether funds can be freed up to assist Greece should Athens ask for it — a process that could take weeks or months.

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BRUSSELS — Portugal must be ready to make more cutbacks if it can't achieve its deficit-reduction target, the European Union's executive commission warned as it struggles to curb soaring debt levels across the region.

Portugal's austerity efforts are closely watched by financial markets looking to see whether Greece's borrowing problems could spread to another member of Europe's currency union. Eurozone nations have pledged Greece some euro30 billion in loans if it can't borrow from markets.

Meanwhile, Portugal raised euro2 billion ($2.72 billion) in its biggest bond auction of the year and could have sold twice that amount amid strong demand, the country's debt agency said.

GENEVA _ UBS AG's chairman defended the bank's increased bonuses and a proposal to absolve former executives of responsibility for a U.S. tax evasion fiasco and billions of dollars in losses.