Wires

Japan Hot Stocks-Yaskawa Electric, KDDI, Toray Industries, Tokai Rika

Share

TOKYO, Oct 11 (Reuters) - The Nikkei average fell0.5 percent and the broader Topix eased 0.1 percent onThursday morning.

The following stocks were on the move:

**YASKAWA ELECTRIC SLIPS AFTER J.P. MORGAN CUTS PRICE TARGET**

Yaskawa Electric Corp slipped 0.8 percent to 509yen after J.P. Morgan lowered its price target on the electricmotor maker to 575 yen from 660, citing weak market conditions.

"While we think the company is likely to lower guidance whenreporting 1H results on Oct. 17, we expect only a limitednegative reaction by the stock price," J.P. Morgan said in areport.

"However, we believe that positive catalysts would benecessary, in addition to the working-out of negative catalysts,for a stock price rebound. We focus now on signs of thebottoming of the ISM and the PMI and SPE (semiconductorproduction equipment) investment in China."

0151 GMT

**KDDI ADVANCES AFTER J.P. MORGAN LIFTS PRICE TARGET**

KDDI Corp advanced 2.8 percent to 5,910 yen after J.P.Morgan lifted its price target on the mobile operator to 6,000yen from 5,000, saying it expects improvement in earnings forthe quarter ended September.

"We expect momentum to improve in 2Q, with operating profitstaying broadly unchanged year-on-year following the 33 percentyear-on-year decline in 1Q caused mainly by handsetwrite-downs," J.P. Morgan said in a note to clients.

"We estimate progress as planned toward management'sfull-year guidance, and thus do not expect substantial guidancerevision."

The brokerage maintained a 'neutral' rating.

0132 GMT

**TORAY INDUSTRIES FALLS AFTER NOMURA DOWNGRADE**

Toray Industries Inc slipped 0.9 percent to 425 yen afterNomura Securities downgraded the synthetic fibre maker to'neutral' from 'buy', saying demand for the company's productswas unlikely to recover in the near term because of the delay ineconomic recovery in Asia.

The brokerage also cut its price target to 450 yen from 630and lowered its operating profit forecast by 12 percent to 95billion yen.

0118 GMT

**TOKAI RIKA HITS 3-YEAR LOW AFTER TOYOTA RECALL**

Tokai Rika Co Ltd, a car parts maker, slumped 9.3 percent to908 yen, hitting a three-year low, after Toyota Motor Corp

said it would recall more than 7.4 million vehiclesworldwide for faulty power window switches, traderssaid.

Toyota lost 2 percent to 2,884 yen, slightly underperforminga 1.8 percent fall in rival Nissan Motor Co .

0029 GMT

**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, PrateekChatterjee and Sunil Nair)

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

Keywords: MARKETS JAPAN STOCKS HOT/