TOKYO, Oct 11 (Reuters) - The Nikkei average fell 0.4 percent and the broader Topix eased 0.2 percent on Thursday morning.
The following stock was on the move:
**TORAY INDUSTRIES FALLS AFTER NOMURA DOWNGRADE**
Toray Industries Inc slipped 0.9 percent to 425 yen after Nomura Securities downgraded the synthetic fibre maker to 'neutral' from 'buy', saying demand for the company's products was unlikely to recover in the near term because of the delay in economic recovery in Asia.
The brokerage also cut its price target to 450 yen from 630 and lowered its operating profit forecast by 12 percent to 95 billion yen.
**TOKAI RIKA HITS 3-YEAR LOW AFTER TOYOTA RECALL**
Tokai Rika Co Ltd, a car parts maker, slumped 9.3 percent to 908 yen, hitting a three-year low, after Toyota Motor Corp
said it would recall more than 7.4 million vehicles worldwide for faulty power window switches, traders said.
Toyota lost 2 percent to 2,884 yen, slightly underperforming a 1.8 percent fall in rival Nissan Motor Co .
**SHIN-ETSU CHEMICAL GAINS AFTER NOMURA UPGRADE**
Shin-Etsu Chemical Co Ltd gained 1.4 percent to 4,375 yen after Nomura Securities upgraded its rating on the company to 'buy' from 'neutral', citing growth in demand for PVC in the United States.
The brokerage lifted its price target to 5,300 yen from 4,600 yen.
"U.S. indicators published at the beginning of October, including the ISM indices and employment statistics point to a greater likelihood that the U.S. economy and housing sales in particular will remain strong," Nomura said in a note.
"In response, we have raised our estimates for PVC demand in North America through 14/3, and hence raised our earnings forecasts for Shin-Etsu Chemical."
Nomura raised its operating profit forecast for Shin-Etsu by 3.5 percent to 179.5 billion yen for the business year ending March 2014.
(Reporting by Dominic Lau; Editing by Chris Gallagher and Prateek Chatterjee)
Keywords: MARKETS JAPAN STOCKS HOT/