Global stocks fall on renewed Europe fears

Global stocks fell on Wednesday, with Wall Street retreating from its biggest gain in a month as investors turned to safe-havens on worries that Spain might light a new fire under the euro zone debt crisis.

Risk appetite faded as concerns about the financial health of Spain - Europe's fourth-largest economy - pushed up demand for US Treasuries and government bonds of the euro zone's most stable nation, Germany.

The Dow Jones industrial average ended down 82.79 points, or 0.63 percent, at 13,032.75. The Standard & Poor's 500 Index was down 5.64 points, or 0.41 percent, at 1,385.14. The Nasdaq Composite Index was down 11.37 points, or 0.37 percent, at 3,031.45.

European shares went into reverse, led by heavy falls for both Spanish and Italian indexes, with bank stocks hit by investor worries over a Spanish debt auction on Thursday.

The FTSEurofirst 300 index of top European shares closed down 0.7 percent at 1,046.18 points, having jumped 2 percent on Tuesday.

In Asia, Japan's Nikkei index rallied 2.1 percent today on robust US corporate earnings, firm demand for Spanish debt and an upbeat German economic sentiment survey, with signals that the Bank of Japan may take more easing steps also providing momentum.

The Nikkei closed 202.55 points higher at 9,667.26, breaking above its 13-week moving average near 9,583, after falling below the psychologically key 9,500 mark yesterday. The broader Topix advanced 2 percent to 819.27.