Asian stocks fall in worst month since oct 2008

Asian stocks fell on Friday, extending the worst monthly performance since the global financial crisis in October 2008 despite the German parliament''s approval of a stronger Eurozone bailout fund . Markets in Asia with institutional investors continuing to hedge against further Asian currency weakness, including the yuan, . The Chinese shares racked up more losses amid fears that the Euro crisis could hit Asian exports. Mainland Chinese stocks listed in Hong Kong fell 3.3 per cent , underperforming the rest of the region, with investors selling off bank shares. In Asia, stocks in Japan , Australia and Korea were steady to slightly lower with only Hong Kong shares among the major losers, dropping about 1.8 per cent, as investors locked in profits. While window-dressing by fund managers buying some of the quarter''s outperforming issues to improve their books has helped support shares this week, gains may be hard to get in the future as broader macro concerns still remain. Window-dressing is a strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders. "Window-dressing tends to support the market at the end of quarter, and some relief about Europe''s situation after the German vote is also giving buyers more confidence," a media report quoted Mitsushige Akino, chief fund manager at Japan''s Ichiyoshi Investment Management Co. MSCI''s index of Asia Pacific shares outside Japan fell 1.3 per cent after rising for three consecutive days. For the month, it is down more than 13 per cent, its biggest monthly drop since October 2008. US stock futures were down 0.6 per cent after ringing up decent gains on Thursday.