European stocks rose the most in a week, reversing earlier losses, after Mario Draghi said the European Central Banks expanded purchase program could include government bonds.

The Stoxx Europe 600 Index added 0.5 percent to 337.25 at the close of trading in London, after earlier falling as much as 0.8 percent as Japan unexpectedly slipped into a recession. The Stoxx 600 has rebounded 8.8 percent from this years low on Oct. 16 as the Bank of Japan unexpectedly boosted its stimulus and most lenders in Europe passed capital-strength tests.

Earlier, European shares followed Asian stocks lower amid concern over the strength of the global recovery after the report on Japans gross domestic product.

The nations economy, the worlds third largest, shrank an annualized 1.6 percent in the three months through September, following a revised slump of 7.3 percent in the previous quarter. That missed projections for a 2.2 percent gain in the third quarter. The Bank of Japan holds its monetary policy meeting this week. The MSCI Asia Pacific Index dropped 1.4 percent, with Japans Topix index slumping 2.5 percent.

Source: Bloomberg