REFILE-UPDATE 3-Daiwa Sec to double Asia capital to expand

* To boost Asia operation capital by $1.1 bln

* To increase staff in Asian businesses

* To expand REIT business (Removes extraneous word "also" in second paragraph)

By Junko Fujita

TOKYO, Nov 12 (Reuters) - Daiwa Securities Group Inc (8601.T), Japan's No.2 brokerage, said it will double the capital of its Asian operations to 190 billion yen ($2.1 billion) as it accelerates overseas expansion.

Daiwa Chief Executive Shigeharu Suzuki said on Thursday the brokerage would also expand its Asian stock and derivatives staff by 300, while adding 100 people to handle underwriting and mergers and acquisitions.

At home, Daiwa withdrew last month from its decade-long investment banking joint venture with Sumitomo Mitsui Financial Group (8316.T) (SMFG), forcing the brokerage to go it alone against bigger rivals such as Nomura Holdings Inc (8604.T).

"Our strategies are obviously different from Nomura's," Suzuki said at a meeting with investors and the media. "Nomura is expanding globally, but our focus is Asia."

Daiwa plans to increase the capabilities of its Hong Kong office and is willing to hire talented bankers, Suzki said.

It will increase staff in its wholesale operations in the Asia-Pacific region to 1,120 by March 2012 from 650 as of September this year.

Money raised from the share sale earlier this year as well as profit from the sale of its stake in Sanyo Electric (6764.T) will be used to increase capital for its Asian business by 100 billion yen by April 2010, he said.

Profits from the sale of its Sanyo Electric stake amounted to 92.6 billion yen, while it raised 200 billion yen in July through its first equity offering in 20 years.

Earlier this month, Suzuki told Reuters the firm was seeking an acquisition to help it win more investment banking deals in the rest of Asia, though he said the search would not be easy. [ID:nT128675]

Daiwa also plans to expand its real estate trust investment business, Suzuki said. The company earlier this year bought a stake in a REIT called DA Office Investment Corp 8796.T and also bought its asset manager. ($1=89.85 Yen) (Editing by Michael Watson)