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Japan Hot Stocks-Don Quijote, Xebio, Softbank, KDDI, Shimamura

TOKYO, Oct 2 (Reuters) - The Nikkei average and the broader Topix added 0.2 percent on Tuesday morning.

The following stocks were on the move:

**DON QUIJOTE GAINS AFTER J.P.MORGAN LIFTS PRICE TARGET**

Don Quijote Co Ltd gained 1.5 percent to 3,035 yen after J.P.Morgan raised its price target on the discount store to 3,600 yen from 3,400, citing expectations of firm profit growth in the first quarter ended September.

"We think the company made steady progress in 1Q. We believe same-store sales were somewhat soft in July and August owing to cool summer weather and a reflexive downturn in demand for TVs," the brokerage said in a note.

"In September, same-store sales are on pace to rise 1-2 percent year-on-year. Demand is firm in the food and sundries category and the cosmetics-related products category."

J.P.Morgan maintained its 'overweight' rating on Don Quijote.

0157 GMT

**XEBIO SLIPS AFTER J.P. MORGAN CUTS PRICE TARGET**

Xebio Co Ltd fell 2.2 percent to 1,555 yen after J.P. Morgan cut its price target on the apparel retailing chain to 1,800 yen from 2,000, saying it expected the firm to post weaker earnings in the second quarter ended September.

"We maintain our neutral rating but lower our price target and earnings estimates mainly because of a lower gross margin assumption, owing to the likelihood that private label goods will account for a lower proportion of sales than planned," J.P. Morgan said in a note.

"We lower our operating profit estimates for FY2012 and FY2013 by 3 and 5 percent respectively."

0143 GMT

**SOFTBANK UP ON EACCESS DEAL, KDDI FALLS**

Softbank Corp advanced 3.4 percent to 3,210 yen and was the most-traded stock on the main board by turnover after the mobile operator said it would buy smaller rival eAccess Ltd in a $1.84 billion deal.

Traders and analysts said the deal would allow Softbank to improve its high-speed data frequency spectrum and its competitiveness against KDDI Corp and other carriers.

"We maintain our buy rating and keep the shares on our conviction list. We see this acquisition strengthening Softbank's LTE frequencies," Goldman Sachs said in a note.

KDDI lost 2.7 percent to 5,830 yen and was the second-most traded stock.

Shares of eAccess were untraded with a glut of buy orders. The stock was notionally quoted at 23,000 yen, up 21 percent from Monday's close of 19,000 yen.

0129 GMT

**SHIMAMURA FALLS AFTER DISAPPOINTING Q2 EARNINGS**

Shimamura Co Ltd dropped 2.4 percent to 8,590 yen after the clothing store chain reported a 3.9 percent drop in second-quarter earnings ended Aug. 20 compared with a year earlier due to higher costs.

The company posted a 4.1 percent rise in sales in the quarter versus the same period last year.

0114 GMT

**NEXON HITS 4-WEEK HIGH AFTER ANNOUNCING ACQUISITION**

Nexon Co Ltd jumped 9.3 percent to 1,133 yen, hitting a four-week high after the online game provider said it would acquire gloops, a social applications company, for 36.5 billion yen, a move which traders said could help boost its mobile gaming business.

0053 GMT

**ALPS ELECTRIC FALLS TO 3-YEAR LOW AFTER CUTTING GUIDANCE**

Alps Electric Co Ltd slumped 10.5 percent to 360 yen, hitting a three-year low after the electronic parts maker cut its operating profit forecast by 46 percent to 11.8 billion yen ($151 million) for the business year ending in March, citing higher material costs and a strong yen.

Alps Electric has fallen 31.6 percent this year, underperforming a 0.8 percent rise in the Topix.

0019 GMT ($1 = 78.0600 Japanese yen)

(Reporting by Dominic Lau; Editing by Chris Gallagher, Jijo Jacob and Prateek Chatterjee)

((dominic.lau@thomsonreuters.com)(+81 3 6441 1917)(Reuters Messaging: dominic.lau.thomsonreuters@reuters.net))

Keywords: MARKETS JAPAN STOCKS HOT/

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