Oct. 11 (Bloomberg) -- 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 0.3 percent to 235.39 at 10:49 a.m. in Hong Kong. South Korea's Kospi index dropped 0.5 percent to 876.72. Samsung Electronics, which will report earnings on Oct. 15, may say that third-quarter profit rose at its slowest pace in three quarters, analysts surveyed by Bloomberg said.

``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 and New Zealand. Japan's stock exchanges are closed for a national holiday.

The U.S. added 96,000 jobs last month, the Labor Department said. That's lower than the median forecast of 148,000 expected by economists in a Bloomberg survey. The government lowered its previous estimate for August by 16,000 jobs to 128,000 and said a series of hurricanes didn't ``materially'' affect employment.

Exporters

Shares of exporters around the region declined. Samsung Electronics, the world's second-largest chipmaker after Intel Corp., declined 1.6 percent to 469,000 won. Taiwan Semiconductor, the world's largest supplier of made-to-order computer chips that counts the U.S. as its biggest export market, fell 0.9 percent to NT$42.90.

Hyundai Motor Co., the nation's largest automaker, shed 1.7 percent to 58,900 won. AU Optronics Corp., Taiwan's largest maker of flat-panel displays used in computers and televisions, declined 2.9 percent to NT$43.90. Taiwan's Taiex index lost 0.8 percent to 6054.36.

``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 2.9 percent to 35,800 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 2.8 percent to S$1.04.

Australia

The S&P/ASX 200 Index added 0.4 percent to 3701.40. Howard, who was first elected in March 1996, campaigned on his record of economic management, low interest rates and tax cuts.

``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, 51.1 percent controlled by the government, jumped 3.2 percent to A$4.86. It is set for its biggest gain since June 21. John Fairfax Holdings Ltd., the country's second-biggest newspaper publisher, added 2.9 percent to A$3.92, the highest since March 28, 2002, on expectations the government may change media ownership rules.

Upper House Control

Howard's Liberal-National coalition is set to become the first government to control the upper house Senate since 1981, allowing it to sell its stake in Telstra and relax media ownership laws without having to negotiate with opposition legislators.

Gunns Ltd., the country's largest forestry company, surged 2.4 percent to A$14.39 as Howard pledged to spend A$51.8 million ($37.5 million) on the timber industry if he won.

Singapore's Straits Times Index lost 0.4 percent to 1996.54. 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.

`Deteriorating'

United Overseas Bank, Singapore's second-largest lender by assets, fell 0.7 percent to S$13.70. Oversea-Chinese Banking Corp., the third-largest bank, shed 0.7 percent to S$13.90. DBS Group Holdings Ltd., Southeast Asia's biggest bank by assets, fell 0.6 percent to S$15.60.

``The slowdown is worse than expected, most clearly in the manufacturing sector,'' said Alan Richardson, who helps manage $2.8 billion in Asia, excluding Japan, at Baring Asset Management in Hong Kong. For manufacturing and technology-related stocks, ``the fundamental operating outlook is deteriorating.''

To contact the reporter on this story: Doohee Hong in Seoul at dhong5@bloomberg.net.

Last Updated: October 10, 2004 22:52 EDT