Asian shares decline on last day of the month (Reuters) (27-02-2009)

HONG KONG, Feb 27 (Reuters) - Asian shares fell on Friday, ending a tough month marked by nagging fears about the world economy and the financial system, though Tokyo stocks rose and safety plays such as the dollar pared recent gains.

Stock market gains at the start of the year unraveled further in February and the MSCI index of Asia-Pacific shares outside Japan headed for a 6 percent monthly fall, having hit at one point their lowest since late November.

Grim economic data across Asia, including double-digit export declines and shrinking economic output, are also pummeling currencies such as the South Korean won, which on Friday hit an 11-year low against the dollar.

The MSCI index of Asia-Pacific stocks outside Japan .MIAPJ0000PUS fell 0.9 percent by 0710 GMT, losing 13 percent so far this year to reflect pessimism about the U.S. and world economy.

In Japan, production at factories plunged by a record 10 percent last month, and new jobs proved harder to find, showing the country's worst recession since World War Two is deepening.

Yet Tokyo stocks ended the month on a positive note, with banks lifted by news that, according to a person familiar with the talks, the U.S. government and Citigroup reached a deal to convert up to $25 billion in government-held preferred shares in the bank to common equity.

The Nikkei average closed up 1.5 percent to end a month in which it flirted with 26-year lows as defensive shares such as KDDI Corp climbed.

Source: Reuters