Jan. 2 (Bloomberg) -- Asian stocks fell, extending the fourth quarter's decline, after government reports in South Korea and Singapore showed the two countries' economies are slowing.

Samsung Electronics Co. dropped after South Korea's export growth weakened. DBS Group Holdings Ltd., Singapore's largest bank, retreated after the economy shrank for the first time in 18 quarters. Hon Hai Precision Industry Co., maker of Apple Inc.'s iPods, fell after growth in U.S. holiday Internet sales slowed.

``The negative impact of outside risks on Asian economies will be stronger this year,'' said Kwon Hyeuk Boo, who helps manage the equivalent of $3.2 billion at Daishin Investment Trust Management Co. in Seoul. The stock markets' ``moves reflect the surrounding environment.''

The MSCI Asia Pacific excluding Japan Index lost 0.7 percent to 526.19 as of 6:22 p.m. in Hong Kong, its biggest decline since Dec. 17. Twice as many stocks dropped as rose on the benchmark, which extended its fourth-quarter slide of 0.9 percent. Japan and New Zealand were shut today.

The MSCI benchmark, which was little changed yesterday, jumped 33 percent in 2007, while a regional index that includes Japanese shares advanced 12 percent, the smallest annual gain since 2002.

U.S. stocks fell on the last day of trading in 2007 on concern economic growth in the nation will falter amid widening credit-market losses. The Standard & Poor's 500 Index dropped 0.7 percent, cutting its annual gain to 3.5 percent.

South Korea's Kospi index slid 2.3 percent, a two-week low. Singapore's Straits Times Index declined 0.6 percent. Regional benchmarks extended losses after Sri Lankan officials said a bomb targeting an army bus in the capital Colombo killed at least four people.

`Added Risks'

``The latest bombing is a reminder of political tensions scattered around the world,'' said Ashley Kang, who helps manage $1.7 billion at IBT Securities Co. in Taipei. ``Such radical actions added risks to stock investments.''

Samsung, South Korea's largest exporter, lost 2.2 percent to 544,000 won, while Shinhan Financial Group Co., South Korea's second-biggest bank, dropped 2.8 percent to 52,000 won. Overseas shipments grew 15.5 percent in December from a year earlier, slowing from a 17.1 percent increase the previous month, the Commerce Ministry said today. That was lower than the median estimate of 20.2 percent in a Bloomberg News survey of economists.

Meanwhile, Finance Minister Kwon Okyu said the nation's $887 billion economy will expand at an ``upper 4 percent'' pace in 2008, down from a previous forecast of 5 percent.

DBS, Venture

In Singapore, gross domestic product shrank an annualized 3.2 percent after adjusting for inflation, the trade ministry said in a statement today. Economists were expecting a 3.1 percent gain. DBS Group fell 0.3 percent to S$20.64, its fourth straight drop.

Exporters slumped elsewhere after ComScore Inc. said growth of online spending in the U.S. from Nov. 1 through Dec. 27 slowed to a 19 percent increase. The sales gain trailed last year's 26 percent and was the smallest advance since the Reston, Virginia- based Internet researcher began reporting the figures in 2002.

Hon Hai, the world's largest contract manufacturer of electronics, lost 3.7 percent to NT$194.50. Li & Fung Ltd., a Hong Kong-based supplier to Wal-Mart Stories Inc., declined 3.3 percent to HK$30.45.

Centro Properties Group, facing a Feb. 15 deadline to refinance A$3.9 billion ($3.4 billion) of debt, jumped after saying it's looking for buyers of its assets. The stock added 3 percent to A$1.04, following a 82 percent slump in its shares last month.

`Good News'

Melbourne-based Centro said it is ``seeking expressions of interest'' from potential buyers and will consider offers for all of the company or assets including its Australian and U.S. funds as it struggles to refinance debt.

``After the debt scare last year, the market will always enjoy a bit of good news about Centro on the first trading day of a new year,'' said Richard Wallace, who helps manage $138 million at Wallace Funds Management in Sydney.

BHP Billiton Ltd., the world's largest mining company and Australia's biggest oil producer, added 0.4 percent to A$40.30. Woodside Petroleum Ltd., Australia's No.2 oil and gas producer, climbed 1.1 percent to A$50.95.

Crude oil for February delivery rose as much as 0.7 percent to $96.60 a barrel in after-hours trading on the New York Mercantile Exchange. It was at $96.40 recently.

Meanwhile, South Korean builders rose on speculation a plan by President-elect Lee Myung Bak to build a 550-kilometer (342- mile) cross-country waterway will revive the domestic construction industry.

Daelim Industrial Co., South Korea's fifth-largest builder, jumped 5 percent to 188,000 won, the highest close since Nov. 7. Hyundai Engineering & Construction Co., South Korea's second- biggest overseas contractor, gained 5.9 percent to 93,400 won.

BHP Billiton Ltd. (BHP AU)
Centro Properties Group (CNP AU)
Daelim Industrial Co. (000210 KS)
DBS Group Holdings Ltd. (DBS SP)
Hon Hai Precision Industry Co. (2317 TT)
Hyundai Engineering & Construction Co. (000720 KS)
Li & Fung Ltd. (494 HK)
Samsung Electronics Co. (005930 KS)
Shinhan Financial Group Co. (055550 KS)
Woodside Petroleum Ltd. (WPL AU)

To contact the reporter on this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Kyung Bok Cho in Seoul at kcho7@bloomberg.net

Last Updated: January 2, 2008 05:31 EST