Singapore: Most Asian stocks declined as developers in China fell after the government stepped up scrutiny of real estate investments to curb rising housing property prices, countering gains among exporters and commodity producers.

China Vanke Co, the nation's biggest property developer, lost 1.8 per cent in Shenzhen. BHP Billiton Ltd., Australia's No 1 oil and gas producer, increased 1.4 per cent as crude oil prices rose to a two-year high. Li and Fung Ltd, the largest supplier to Wal-Mart Stores Inc., climbed 2.3 per cent in Hong Kong after a government report showed the US economy expanded faster than previously estimated.

Brighter

"It helps to see signs that the US economic outlook looks to be brighter in the short term, but how long this can be sustained remains as a question," said Castor Pang, Hong Kong- based research director at Cinda International Holdings Ltd. "Markets are likely to move sideways toward the yearend. Further policy tightening may take place anytime. Developers are particularly under selling pressure."

The MSCI Asia Pacific Index Excluding Japan Index increased 0.1 per cent to 470.80 as of 4.15pm in Hong Kong, with about seven stocks declining for every five that advanced. The gauge has climbed 4.9 per cent this month as China refrained from raising interest rates and US reports on consumer confidence, the trade deficit and unemployment beat analyst estimates.

China's Shanghai Composite Index dropped 0.8 per cent. The government increased land supply this year and stepped up the scrutiny of real estate investments by foreign companies as it rolls out more measures to contain 18 months of gains in property prices, the land and resources and commerce ministries reported.

Hong Kong's Hang Seng Index declined 0.6 per cent, while Japanese markets are closed for a public holiday.

Australia's S&P/ASX 200 Index rose 0.4 per cent, its highest close since November 5, as takeovers in the country surged to a record this quarter. New Zealand's NZX 50 Index gained 0.3 per cent as economists said the economy will rebound after a Statistics New Zealand report yesterday showed gross domestic product unexpectedly contracted in the third quarter.