July 19 (Bloomberg) -- Asian stocks declined, paced by Advantest Corp. and United Microelectronics Corp., after Royal Philips Electronics NV said it doesn't expect a rebound in the computer-chip industry soon.

LG Electronics Inc., the world's fourth-largest mobile-phone manufacturer, fell after the company's handset division posted its first loss. BlueScope Steel Ltd., Australia's biggest steelmaker, dropped after UBS AG cut its rating on lower steel price estimates.

``There are still doubts out there as to whether earnings results will actually deliver,'' said Mitsushige Akino, who oversees $190 million at Ichiyoshi Investment Management in Tokyo. That's ``keeping a lid on the market.''

The Morgan Stanley Capital International Asia-Pacific Index, which tracks more than 1,000 stocks, lost 0.6 percent to 99.57 at 6:49 p.m. in Tokyo. All 10 of the index's industry groups declined. Japan's Topix index fell, as did benchmarks in Australia, Pakistan, New Zealand, Thailand and the Philippines.

Singapore's Straits Times Index climbed 2 percent, Asia's biggest advance, to a five-year high. Keppel Land Ltd. led gains by developers after the government cut the minimum deposit for homebuyers to 10 percent from 20 percent to allow purchasers to borrow more.

South Korea's Kospi index rose 1.2 percent to its highest close since November 1994, helping it surpass Taiwan's Taiex index in market value. Samsung Electronics Co., the nation's biggest exporter, advanced after the won fell against the dollar, boosting the value of overseas earnings.

Chip Stocks

U.S. stocks fell yesterday in New York as lower-than- expected earnings from Citigroup Inc., the nation's largest financial-services company, weighed on financial shares. The Standard & Poor's 500 Index lost 0.6 percent, its first decline in eight days.

Advantest, the world's biggest maker of equipment used to test computer memory chips, dropped 0.8 percent to 8,240 yen in Tokyo. More than half of the 162 computer-related companies in the Topix are set to report this month, starting this week. Another 70 companies will report next month.

United Microelectronics, the world's second-biggest made-to- order chip supplier, slid 1.4 percent to NT$24.20 in Taiwan. Chartered Semiconductor Manufacturing Ltd., Singapore's biggest chipmaker, lost 2.1 percent to S$1.40.

Royal Philips, Europe's largest maker of televisions, said second-quarter sales at its chip unit declined 6 percent from a year earlier and it doesn't expect ``any significant upturn in market conditions in the short term.''

LG, BlueScope

LG Electronics lost 1.6 percent to 66,800 won. The company yesterday slashed its 2005 mobile-phone shipment growth forecast to as little as 20 percent, after forecasting 40 percent growth in January.

Goldman Sachs Group Inc. and JPMorgan Chase & Co. analysts cut their earnings and price targets on the stock.

BlueScope, Australia's biggest steelmaker, fell 1.7 percent to A$8.70. The shares were cut to ``reduce'' from ``neutral'' at UBS, according to a July 19 note by analysts Matthew Reynolds and Chris Drew. UBS reduced its average steel price estimates for 2006 to A$618 a ton ($465) from A$649 a ton.

The Straits Times had its biggest advance since May 19, 2004. Keppel Land, Singapore's third-largest developer by assets, jumped 5.7 percent to S$2.98. City Developments Ltd., the second largest, rose 9.3 percent to S$8.85.

Of the 10 percent deposit required for home purchases based on the property value, the government will now require only half to be in cash.

`Added Incentive'

``With changes to the property policy, sentiment will be positive,'' said Pang Shun-Pen, who helps manage $400 million in Asia outside Japan at HSZ Singapore Pte. ``We've always been positive on the property sector in the longer term. This will be an added incentive.''

CapitaLand Ltd., Southeast Asia's biggest developer, jumped 12 percent to S$2.67, a 15-year high. Its 60 percent owned unit, Raffles Holdings Ltd., which owns the 118-year-old Raffles Hotel in Singapore, said it's selling its hotel business, which is valued at S$1.72 billion ($1 billion), to Colony HR Acquisitions LLC.

Raffles expects a gain of S$605 million from the sale and plans to pay a special dividend of 40 Singapore cents a share. The shares surged 33 percent to a record 90.5 Singapore cents.

`Momentum'

Samsung Electronics, the world's largest computer-memory chipmaker, gained 2.2 percent to 561,000 won, the highest close since April 29, 2004. Separately, Woori Investment & Securities Co. raised its six-month share-price forecast on Samsung to 680,000 won from 610,000 won, on optimism a weaker won will boost earnings from the third quarter.

The won dropped 0.5 percent to 1,040.00 against the dollar at 3 p.m. in Seoul, according to Seoul Money Brokerage Services Ltd.

``The weaker won gives additional momentum for exporters' earnings and profitability,'' said Song In Ho, who helps oversee about $348 million at Kyobo Investment Trust Management Co. in Seoul. ``The weak won is going to last for some time.''

Hyundai Motor Co., South Korea's largest automaker, rose 3.4 percent to 67,100 won. The U.S. is the company's biggest export destination, accounting for 39 percent of its overseas sales in 2004, according to Hyundai.

Advantest Corp. (6857 JT)
BlueScope Steel Ltd. (BSL AU)
CapitaLand Ltd. (CAPL SP)
City Developments Ltd. (CIT SP)
Hyundai Motor Co. (005380 KS)
Keppel Land Ltd. (KPLD SP)
LG Electronics Inc. (066570 SP)
Raffles Holdings Ltd. (RHL SP)
Samsung Electronics Co. (005930 KS)
Chartered Semiconductor Manufacturing Ltd. (CSM SP)
United Microelectronics Corp. (2303 TT)

To contact the reporter on this story: Darren Boey in Hong Kong at dboey@bloomberg.net.

Last Updated: July 19, 2005 05:50 EDT