Policy-makers say worst may be past

Corporate news offered some indications of a recovery.

Wal-Mart, the world's largest retailer, sent a bullish signal about its prospects with its new stock buyback program.

"Your balance sheet today is stronger than a year ago," Wal-Mart Chief Financial Officer Tom Schoewe told attendees at the company's annual meeting. "How many companies ... could make that statement?"

Rio Tinto (RIO.L) said it was ditching a planned tie-up with China's Chinalco that had been driven by fears a prolonged economic slump would make Rio's debt burden unsustainable.

Britain's Carphone Warehouse (CPW.L), Europe's biggest mobile phone retailer, said it expected to see signs of a consumer recovery by the end of this year.

Japan's Canon Inc (7751.T), the world's largest digital camera maker, revived plans to build a $180 million factory as demand holds firm for its high-end single-lens reflex cameras.

(Editing by James Dalgleish and Dan Grebler)