TOKYO (Bloomberg) -- Asian stocks slumped in afternoon trading on concern equity sales by Daiwa Securities Group Inc. and Mizuho Financial Group Inc. will dilute shareholder value.

Daiwa, Japan’s No. 2 brokerage, tumbled 10 percent after saying it plans to raise about 240 billion yen ($2.5 billion) in a share sale. Mizuho, Japan’s third-largest bank by market value, lost 3.8 percent after people familiar with the matter said it may start selling shares as early as this week. JTEKT Corp., a parts affiliate of Toyota Motor Corp., rose 1.9 percent after Japanese industrial production rose for a third month. LG Display Co., the world’s second-largest maker of liquid-crystal displays, rose 1.7 percent in Seoul after saying demand from customers was higher than expected.
The MSCI Asia Pacific Index fell 0.8 percent to 102.86 as of 1:56 p.m. in Tokyo, the benchmark’s first decline in four days. About five shares sank for every three that gained. The gauge has risen 46 percent from a five-year low reached in March.
“Investors are skeptical Daiwa’s share sale will offset the negative impact of dilution and boost the brokerage’s earnings under these difficult conditions,” said Masaru Hamasaki, a Tokyo-based senior strategist at Toyota Asset Management Co., which oversees $15 billion. “Revenue from broking remains stagnant, demand for merger and acquisition won’t recover anytime soon and investment banking isn’t as profitable as before.”
Japan’s Nikkei 225 Stock Average slumped 0.9 percent to 9,791.97. The nation’s industrial production rose 5.9 percent in May from a month earlier, the Trade Ministry said on Monday, matching the fastest pace of expansion since 1953.
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Pepinnini Materials Ltd. soared as much as 24 percent in Sydney after announcing it found gold mineralization in rock samples from the state of Queensland. Kweichow Moutai Co. jumped 7.9 percent in Shanghai on speculation the spirits maker will increase prices.
Futures on the Standard & Poor’s 500 Index fell 0.5 percent. The S&P 500 lost 0.2 percent on June 26 after the Commerce Department said the savings rate among Americans rose to a 15- year high of 6.9 percent in May, raising concern demand for electronics and autos won’t rebound.
Most regional markets fell except for those in China, Thailand, New Zealand, Malaysia and Pakistan.
For the first six months of the year the MSCI Asia has jumped 15 percent, the best first half since 1999. That compares with a 1.7 percent advance for the S&P 500, while Europe’s Stoxx 600 gauge rose 3.1 percent.
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Daiwa plunged 10 percent to 601 yen, the steepest drop since November. On June 26 the company announced plans to issue new shares for the first time in two decades. The stock had climbed as much as 114 percent from the March low.
“As the repayment of borrowings does not create value, issuance will lead to dilution in the near term, and we lower our target price,” Makoto Kasai, an analyst at Nikko Citigroup Ltd., wrote in a report dated on Monday. “We believe the offering will be negative for the share price in the near term as we had not thought this much additional capital would be needed.”
Mizuho fell 3.8 percent to 228 yen, reversing an early gain and triggering a broader selloff in the afternoon. The bank plans to begin marketing about 600 billion yen in new common stock to investors as early as this week, two people with knowledge of the matter said. Mizuho, which posted a 588.8 billion yen loss for the latest financial year, said May 15 it plans to sell shares within a year in its first global offering.
Nomura Holdings Inc., Japan’s largest brokerage, retreated 3.9 percent to 799 yen. Mitsubishi UFJ Financial Group Inc., the country’s biggest lender by value, lost 2.6 percent to 596 yen.
LG Display rose 1.7 percent to 32,550 won. Samsung Electronics Co., the world’s largest television maker, gained 0.5 percent to 599,000 won.
“Orders are surging and we’re still unable to meet all the demand,” Koo Do Hoi, vice president of Seoul-based LG Display, said June 26. Koo said the company is experiencing a shortage of more than 10 percent in panel supply to customers.
Stocks on MSCI’s Asian index trade at 23.5 times estimated earnings, compared with 15.5 times for the S&P 500 and 12.8 times for Europe’s Stoxx 600.
“We are going to run out of steam on this rebound in economic activity,” said Takashi Kamiya, who helps oversee some $16 billion at T&D Asset Management Co. in Tokyo. “The year-on- year comparisons for interest rates and oil prices will worsen, while the impact from stimulus measures will diminish.”
Daewoo Engineering & Construction Co. soared 9.3 percent to 14,050 won. Kumho Asiana Group will consult advisers and creditors to plan the sale of as much as 72 percent of South Korea’s largest builder, Kumho said on Sunday in an e-mailed statement. The stake, with a market value of 3 trillion won ($2.34 billion) as of June 26, was purchased in 2006 for 6.43 trillion won.