Asian stocks hit 4-month lows

TOKYO, Sept 29 (Reuters): Asian stocks stumbled to a four-month low on Monday as political unrest in Hong Kong rattled investors, while the US dollar basked in the afterglow of data showing the world's biggest economy on a strong footing.
Hong Kong shares dropped 2.3 per cent to three-month lows in the worst unrest since China took back control of the former British colony two decades ago.
In Europe, shares prices are expected to rise in sympathy with the rebound in US stocks on Friday following upbeat revised second quarter US growth figures.
Asia, however, failed to ride on Wall Street's performance, with the MSCI's broadest index of Asia-Pacific shares outside Japan dropping 1.3 per cent, hitting its lowest level since mid-May.
Even the usually calm Hong Kong-dollar, which is pegged to a narrow band against the US dollar, slipped 0.1 per cent to 7.761 against the greenback, its lowest level since March, as the street clashes affected some banks' operations.
"We consider the peg (to the US dollar) virtually unbreakable but (today's fall in the spot price) is a warning that financial markets and the economy are vulnerable to political uncertainty," said Tim Condon, Asia economist at ING.
Offshore yuan traded at 6.1545 to the dollar, slightly weaker than Friday but off the six-week low of 6.1787 hit earlier this month.
Markets in mainland China fared better, with Shanghai shares little changed near 1 1/2-year highs.