By Daniel Hauck Oct. 23 (Bloomberg) -- Stocks rose in Europe and Asia and the yen fell as profit surged at Amazon.com Inc. and Kia Motors Corp. The pound slumped as an unexpected third-quarter contraction kept the U.K. in its longest recession on record. The MSCI World Index of 23 developed countries added 0.2 percent at 11:52 a.m. in London, led by raw-material producers as copper climbed to the highest level in almost 13 months. Standard & Poor’s 500 Index futures pared gains to trade little changed after the British GDP report. The yen declined against 12 of the 16 most-traded currencies tracked by Bloomberg, while the pound fell 1.2 percent against the dollar. Amazon.com, the world’s largest Internet retailer, posted third-quarter profit that beat analysts’ estimates. Of companies in the MSCI World that have reported results, 77 percent exceeded projections. The U.K. economy shrank 0.4 percent in the July-September period, the government said, extending the contraction to six quarters. Economists had projected in a Bloomberg survey that Britain would follow France, Germany, Hong Kong and New Zealand in exiting recessions. “The earnings season has proved stronger than the market had initially expected,” Arjuna Mahendran, the Singapore-based chief investment strategist for Asia at HSBC Private Bank, said in an interview on Bloomberg Television. “The money just keeps coming into the markets.” U.K., Europe Europe’s Dow Jones Stoxx 600 Index added 0.4 percent, extending its rebound since March 9 to 57 percent. BHP Billiton Ltd., the world’s biggest mining company, and Rio Tinto Group, the third-largest, climbed more than 2.3 percent in London as lead, nickel, tin and zinc climbed on the London Metal Exchange. Britain’s benchmark FTSE 100 Index maintained its 1 percent gain after the GDP report amid speculation the Bank of England will extend steps to foster economic growth. The yield on U.K. interest-rate futures expiring in March 2010 fell 5 basis points to 0.86 percent as investors reduced bets the central bank will raise interest rates from a record low of 0.5 percent. The S&P 500 is poised for its third straight weekly advance after companies from Travelers Cos. to McDonald’s Corp. reported earnings that beat analysts’ estimates. Sales of existing U.S. homes climbed in September to the highest level in two years as buyers rushed to take advantage of a government tax credit before it runs out, according to a Bloomberg survey of 76 economists. The National Association of Realtors’ report is due at 10 a.m. in Washington. Amazon.com Gains Amazon.com soared 14 percent in pre-market New York trading. Third-quarter net income increased 69 percent after discounts and the Kindle electronic book reader fueled sales. The S&P 500 is trading at its highest valuation since 2003 relative to reported earnings after climbing 62 percent since March 9 as the U.S. lent, spent or guaranteed $11.6 trillion to combat the worst recession since the 1930s. Worldwide, governments from Beijing to Berlin spent $12 trillion to help end the global contraction, according to data from the Washington-based International Monetary Fund. The MSCI Emerging Markets Index rose 1 percent as Kia Motors, South Korea’s second-biggest automaker, climbed 6.7 percent in Seoul on record profit. Copper for delivery in three months rose 1.2 percent to $6,670 a metric ton in London, the highest since September 2008. Wheat Rallies Wheat rose as much as 1.6 percent to $5.605 a bushel and soybeans gained 1.9 percent to $10.26 a bushel in Chicago, both a two-month high, on concern that snow and rains in the U.S. will delay planting. Corn added 1.6 percent to $4.10 a bushel. The yen fell most against the South Korean won among the most-traded currencies, losing 1 percent, as the gains in stocks fueled demand for higher-yielding assets. It dropped 0.4 percent versus the euro. Treasuries led declines in government bonds around the world, with the yield on the two-year note rising 7 basis points to above 1 percent for the first time since Sept. 30. U.K. gilts were the only securities to rise, with the yield on the 10-year falling 5 basis points to 3.65 percent. Germany’s Ifo institute said its business climate index, based on a survey of 7,000 executives, rose to 91.9 from 91.3 in September, the highest reading in a year. The cost of protecting European high-yield corporate bonds from default fell to the lowest in 16 months. Credit-default swaps on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings dropped 10 basis points to 494, according to JPMorgan Chase & Co. prices at 9:31 a.m. in London. That’s the lowest since June 19, 2008, and below the 500 basis-point threshold that BNP Paribas SA analysts said is a “psychological barrier” and the level at which the index may begin to be too tight.

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