Some leaders from the Asia-Pacific Economic Cooperation (APEC) members on Friday called for joint efforts to address the declining market confidence amid the global financial crisis, one day ahead of their summit in Lima, the Peruvian capital.

World economies should take urgent and necessary measures to avert the potential "vicious cycle", Australian Prime Minister Kevin Rudd told an audience of presidents, ministers and entrepreneurs from the Asia-Pacific region.

Australian Prime Minister Kevin Rudd delivered a speech at the two-day APEC Chief Executive Officers (CEO) summit on Friday in Lima. [Xinhua photo]

"As confidence across the world falls, it begins a vicious cycle that leads to further caution on the part of households, leading to further falls in consumer spending, leading to further falls in business investment, leading to lower growth," he said in a speech at the two-day APEC Chief Executive Officers (CEO) summit.

"Governments must step in to take up the slack. This will require further monetary action and it will require fiscal action," Rudd said.

In his speech at the meeting, Chinese President Hu Jintao called on APEC member economies to work together to ensure the sustained economic development of the Asia-Pacific region.

The rich diversity, great interdependence and complementarity among the APEC economies have enabled them to deepen regional cooperation and jointly respond to challenges, he said.

An effective response to the financial crisis and the maintenance of global economic stability are crucial to global growth and the immediate interests of all countries, the Chinese president said.