Asian and European leaders have called for comprehensive reform of the global financial system. Ending a summit in Beijing, they also urged the International Monetary Fund (IMF) to play a greater role in helping countries hit by the market turmoil.

Leaders attending the 43-nation Asia Europe Meeting (Asem) agreed to "undertake effective and comprehensive reform of the international monetary and financial systems".

They said they were moving towards consensus ahead of next month's summit - which will bring together the 20 largest economies in Washington.

Speaking for the hosts, Mr Wen said financial innovation needed to be balanced with regulation. He added: "We need to use every means to prevent the financial crisis from having an impact on the growth of the real economy."

On Friday markets fell back amid fears of a sustained global recession. Wall Street tumbled following similar falls across Europe and Asia.

Global money markets have showed renewed signs of stress, despite the billions of dollars that central banks and governments have pumped into the markets in recent weeks.

In a meeting with heads of UN agencies, the World Bank and the International Monetary Fund, Mr Ban said the crisis could be the last straw for many of the world's poorest people. "It threatens to undermine all our achievements and all our progress," he said.