German vote has little impact as Euro experiences worst showing in a year
THE euro was on course for the biggest monthly drop in nearly a year, with German parliamentary approvals of new powers for Europe's bailout fund having little lasting impact.
Fears of a uncontrollable European debt crisis - and a slowing global economy that would hit Asian exports - caused investors to slash their bets on risky assets in the September quarter.
Markets in Asia, considered by investors to have superior fundamentals compared with developed markets in the West, were not immune, with institutional investors continuing to hedge against further Asian currency weakness.
Mainland Chinese stocks listed in Hong Kong fell 3.8pc , underperforming the rest of the region, with investors selling off bank shares on fears over their exposure in the event of a property market slump.
Stocks in Japan , Australia and Korea were flat to slightly lower, with only Hong Kong shares among the major losers, dropping about 2.3 per cent, as investors locked in profits.