Wires

Japan Hot Stocks-Shin-Etsu Chemical gains after Nomura upgrade

TOKYO, Oct 11 (Reuters) - The benchmark Nikkei average

fell 0.9 percent and the broader Topix lost 0.8percent in early deals on Thursday. The following stock was on the move:

**SHIN-ETSU CHEMICAL GAINS AFTER NOMURA UPGRADE**

Shin-Etsu Chemical Co Ltd gained 1.4 percent to 4,375 yenafter Nomura Securities upgraded its rating on the company to'buy' from 'neutral', citing growth in demand for PVC in theUnited States.

The brokerage lifted its price target to 5,300 yen from4,600 yen.

"U.S. indicators published at the beginning of October,including the ISM indices and employment statistics point to agreater likelihood that the U.S. economy and housing sales inparticular will remain strong," Nomura said in a note.

"In response, we have raised our estimates for PVC demand inNorth America through 14/3, and hence raised our earningsforecasts for Shin-Etsu Chemical."

Nomura raised its operating profit forecast for Shin-Etsu by3.5 percent to 179.5 billion yen for the business year endingMarch 2014.

0015 GMT

(Reporting by Dominic Lau; Editing by Chris Gallagher)

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

Keywords: MARKETS JAPAN STOCKS HOT/