Asian stocks declined, led by Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co., after a U.S. government report showed the world's largest economy last month added fewer jobs than expected. The Morgan Stanley Capital International Asia Pacific excluding Japan Index shed 0.2 percent at 12:58 p.m. in Hong Kong. South Korea's Kospi index dropped 0.4 percent to 878.47. Samsung Electronics may say on Oct. 15 that third-quarter profit rose at its slowest pace in three quarters, according to an analyst survey by Bloomberg News.
``The worse-than-expected job report hurt investors' confidence with corporate earnings reports just ahead,'' said Han Sang Soo, who manages the equivalent of $873 million at Daehan Investment Trust Management Co. in Seoul. Australia's S&P/ASX 200 Index rose after John Howard's government won a fourth term in office with an increased majority. Telstra Corp., the country's largest phone company, led the advance. All other markets open for trading declined, except for those in Indonesia, Thailand, India, China and New Zealand. Japan's stock exchanges are closed for a national holiday.
An Oct. 8 report showed the U.S. added 96,000 jobs last month, missing the median 148,000 estimate of economists in a Bloomberg News survey. That prompted a decline in U.S. stocks, with the Standard & Poor's 500 Index losing 0.8 percent. Crude- oil futures, which ended the week at a record high in New York, also prompted some investors to sell equities.
Exporters
The price of oil ``is the thing that concerns a lot of policy makers,'' said Agnes Deng, who helps manage $2.5 billion at Standard Life Investment Asia in Hong Kong. ``People are looking for downside in earnings growth for the U.S.'' Shares of exporters around the region declined. Samsung Electronics, the world's second-largest chipmaker after Intel Corp., declined 1.9 percent to 467,500 won. Hyundai Motor Co., the nation's largest automaker, shed 1.5 percent to 59,000 won. Taiwan Semiconductor, the world's largest supplier of made- to-order computer chips, fell 0.9 percent to NT$42.90. The company counts the U.S. as its largest export market. AU Optronics Corp., Taiwan's largest maker of flat-panel displays used in computers and televisions, declined 3.1 percent to NT$43.80. Taiwan's Taiex index lost 0.7 percent to 6059.68.
Profitability Hurt
``A slowing U.S. economy will hurt profitability of Taiwan exporters, especially technology companies because they count the U.S. as their primary market,'' said Mike Shiao, who manages the equivalent of $60 million in assets at Invesco Taiwan Ltd. in Taipei. LG.Philips LCD Co., the world's second-largest maker of liquid-crystal displays, lost 3.1 percent to 35,700 won. The company may report today its first profit decline in five quarters after a glut of screens drove prices lower, according to the median estimate of eight analysts surveyed by Bloomberg. Chartered Semiconductor Manufacturing Ltd., which gets about two-thirds of its sales from the U.S., dropped 1.9 percent to S$1.04. STATS ChipPAC Ltd., which provides chip-testing and packaging services, lost 1.9 percent to S$1.05. The S&P/ASX 200 Index added 0.5 percent to 3703.90. Howard, who was first elected in March 1996, campaigned on his record of economic management, low interest rates and tax cuts.
His Liberal-National coalition is also set to become the first government to control the upper house Senate since 1981, allowing it to pass legislation without having to negotiate with opposition legislators.
`Step Forward'
``The size of the victory, and therefore the mandate the government's got, means its reform agenda could take a step forward,'' said Simon Doyle, who helps manage $4.5 billion as a strategist at Schroder Investment Management Australia Ltd. in Sydney. Telstra jumped 3 percent to A$4.85 on optimism the government will sell its 51.1 percent stake in the company. Telstra's weighting in the S&P/ASX 200 Index would increase to about 6.85 percent from 3.39 percent after the government sells its stake, said Marcus Padley, a trader at Tolhurst Noall Group. John Fairfax Holdings Ltd., the country's second-biggest newspaper publisher, added 3.2 percent to A$3.93, on expectations the government may relax media ownership rules.
Singapore's Straits Times Index lost 0.3 percent. Lenders such as United Overseas Bank Ltd. dropped after a government report showed the city-state's economy unexpectedly shrank in the third quarter. The economy contracted at an annual 2.3 percent pace from the second-quarter, seasonally adjusted, the Ministry of Trade and Industry said. That compares with the median forecast for 0.8 percent growth in a Bloomberg News survey of 12 economists. The economy grew at a 11.9 percent rate in the previous quarter. United Overseas Bank, Singapore's second-largest lender by assets, fell 0.7 percent to S$13.70. DBS Group Holdings Ltd., Southeast Asia's biggest bank by assets, fell 0.6 percent to S$15.60. ///www.bloomberg.com