LONDON (AFP) - Asian economic giants Japan and India on Friday revealed fresh damage from the global financial crisis, as Russia moved again to hike interest rates to halt the outflow of capital from the country. Japan slipped deeper into recession with factory output tumbling 3.1 percent and consumer spending dropping 3.8 percent in October, official data showed. The figures were "stunningly bad," said Societe Generale's chief Asia economist, Glenn Maguire. "Japan's industrial activity is set to worsen in the near-term, perhaps by an unprecedented degree, as exports to the US have plunged over the past year," he warned. Rising economic powerhouse India, struggling with extremist attacks in the financial capital Mumbai, said its economic growth slowed to 7.6pc in the third quarter of 2008, from 7.9pc in the second. While it was still a respectable performance at a time when many developed economies are in recession, the slowdown in India highlights the extent to which the US-born financial crisis has spread around the world. The Russian central bank raised its key refinancing interest rate again to 13 percent from 12 percent on Friday to "lower the level of capital outflows and contain inflationary tendencies." The global economic crisis has prompted investors to pull their cash out of developing economies like Russia that are still seen harbouring risk, to safer more established havens. Russian growth is forecast to be sharply down in the wake of the economic crisis and the ruble has also come under huge pressure, forcing the bank to spend tens of billions of dollars propping up its value. In a separate but related move, the bank allowed the ruble to lightly weaken against the dollar-euro basket that serves as its benchmark, Russian news agencies reported, citing market sources. There was also bad news from South Korea, where industrial production fell 2.3 percent in October in a sign that the export-driven economy was slowing faster than expected. Investors mostly managed to look beyond the gloomy news, hoping that interest rate cuts and stimulus spending would eventually turn things around. European markets got off to a lacklustre start. The region continued to feel the fallout from the financial crisis. Britain's Royal Bank of Scotland said the government would end up with a 57.9 percent stake in the bank after a share issue to raise funds to help it cope with the financial crisis. RBS said that ordinary shareholders had agreed to take up only 0.24pc of the share issue, with the government then taking up the balance, as provided for in its recapitalisation plan for the British banking system. Last week, shareholders approved plans to raise 20 billion pounds (23.5 billion euros, 29.5 billion dollars) in fresh capital as part of a state rescue deal for Britain's banking sector. Sweden fell into recession in the third quarter after its economy contracted 0.1 percent for two successive quarters, the national statistics agency (SCB) said on Friday. Sweden's economy shrank by 0.1 percent in the second and third quarters on a sequential basis, the SCB said, adding that it had revised downwards its second quarter figure which in August it had said was flat. With developed nations focused on efforts to boost their own recession-ridden economies, the World Bank urged donors not to abandon poor countries hit by the financial crisis. Developing countries "find themselves at the mercy of a crisis not of their making," World Bank President Robert Zoellick said ahead of a UN development conference this weekend. Meanwhile, Switzerland's economy contracted by 0.05 percent in November, marking the first slowdown since the beginning of the global economic crisis, the KOF research institute said on Friday. The economy is expected to show zero growth in the coming months, while October's growth rate was revised down to 0.28 percent from 0.35pc, the KOF added. The KOF based its projections on a monthly survey of 4,200 Swiss businesses. In September, the KOF had forecast that Switzerland would post two quarters running " the fourth quarter of 2008 and first of 2009 " of negative growth, but that the worst should be over next year.