Retailer's sales and Taiwan exports plunge in crisis

By James Davey and Mark Potter

LONDON (Reuters) - The country's biggest clothing retailer reported its worst sales in a decade on Wednesday and Taiwan said its exports plunged the most on record, grim news belying recent optimism in world markets of a revival in the global economy.

Despite a stream of gloomy company news, investor appetite for riskier assets such as shares has improved on hopes a wide array of government stimulus packages and the cheap, ample supply of money from central banks will finally pay off later this year.

Reflecting the stronger risk appetite, MSCI's All Country World index .MIWD00000PUS rose 0.6 percent, up for the 10th straight session and heading for its longest winning streak in five years. <MKTS/GLOB>

"Obviously market sentiment is improving despite the fundamentals of the global economy remaining weak," said Karen Lin, a fund manager of Paradigm Asset Management in Taiwan.

"This round of rebound is based on ample liquidity in the market, and it might continue the strong upward momentum if Wall Street doesn't return to its volatile movement seen last year."

But news from Marks & Spencer (MKS.L) painted a different picture.

It said was looking to close 27 stores and cut more than 1,200 jobs to offset its worst quarterly sales performance for a decade.

The 125-year-old clothing, food and homewares group said like-for-like sales in the UK dropped 7.1 percent in the 13 weeks to December 27, the third quarter of its financial year.