TOKYO, Jan 14 (Reuters) - The benchmark Nikkei average fell 0.8 percent and the broader TOPIX lost 0.6 percent on Friday.
The following stocks were on the move:
**KUBOTA CORP RISES ON OVERSEAS EXPANSION REPORT**
Farming equipment maker Kubota rose 1 percent to 819 yen after the Nikkei business daily said that it will set up a sales branch in Africa by year's end to kick off marketing of farm machinery.
Quoting Chairman and President Yasuo Masumoto, the daily said that Kubota will decide on specifics later, including personnel, where to set up shop and the type of operations.
Due to poor growth prospects at home, Kubota also intends to begin selling agricultural and construction machinery in Russia and Eastern Europe, the paper said.
0551 GMT
**DAIKIN FALLS, SAYS CONSIDERING GOODMAN BUYOUT**
Daikin erased gains and fell 2.7 percent to 2,881 yen after the company's CEO said it is considering buying out U.S. rival Goodman Global in what could be a $4 billion deal.
'The deal itself has been widely expected, but the fact that the company is announcing this triggered concerns about possible financing risk,' said a fund manager who asked not to be named. 'The market has expected that Daikin would raise capital sooner or later, so even if it is planning it, it's not a surprise. But the market has become more alert.'
CEO Noriyuki Inoue told reporters that there was no need to rush, however, and that one strategy would be to buy shares in Goodman after any future IPO. Goodman Global withdrew a filing for an IPO in November.
A source familiar with the situation said last month that Daikin, the world's second-largest maker of air-conditioners, was one of several parties interested in buying unlisted Goodman Global in a possible $4 billion transaction.
0525 GMT
**TOSHIBA CORP UP AFTER DEUTSCHE HIKES RATING**
Toshiba gained 1.2 percent to 492 yen after Deutsche Securities hiked its rating to 'buy' from 'hold.'
'We expect growth in the NAND flash business, higher industrial systems profits, and company-wide fixed-cost cuts to improve Toshiba?s profits,' analyst Takeo Miyamoto wrote in a research report.
The brokerage raised its operating profit outlook for Toshiba the year ending March to 280 billion yen from 260 billion yen.
It also hiked the company's target price to 600 yen from 430 yen.
0508 GMT
**TOYOTA CLIMBS ON J.P.MORGAN UPGRADE**
Shares in the world's No.1 automaker, Toyota Motors Corp, gained 1.3 percent to 3,580 yen after J.P.Morgan hiked the company's rating to 'neutral' from 'underweight' on a predicted rebound in the U.S. economy and earnings recovery in the fiscal year to March 2012.
'With the US economy recovering and Japanese auto sales facing less risk of a major decline, we think it is increasingly likely that the auto markets of the developed world will bottom out,' analyst Kohei Takahashi wrote in a note to clients.
The report added, however, the stock is unlikely to strongly outperform the auto sector, as its Japan operations, remain plagued by deteriorating earnings from exports and excess production capacity.
'Risks include a faster-than-expected decline in quality-related costs, yen depreciation and slower-than-expected improvement in domestic earnings.'
Toyota was the third most actively traded share on the Tokyo Stock Exchange's main board by turnover.
0200 GMT
**CHIPMAKERS JUMP AS INTEL'S RESULTS BEAT ESTIMATES**
Shares of Elpida Memory Inc and other chip-related stocks gained after revenue and margin forecasts of Intel Corp , the world's largest chipmaker, beat expectations on healthy technology spending on Thursday.
Elpida jumped 2 percent to 1,091 yen and chip gear maker Tokyo Electron Ltd gained 3.4 percent to 5,560 yen.
The maker of semiconductor grinding and cutting equipment, Disco Corp rose 2 percent to 5,130 yen while silicon wafer-maker Sumco jumped 3.4 percent to 1,283 yen. Tokyo Electron and Sumco were among the top percentage gainers on the Nikkei 225.
0108 GMT
**FAST RETAILING JUMPS AFTER OUTLOOK KEPT, NOMURA RATING HIKE**
Shares of Fast Retailing jumped 5.5 percent to 12,800 yen in heavy trade, after the firm kept its annual profit forecast intact despite an 18.4 percent tumble in first-quarter operating profit and as Nomura Securities hiked the firm's rating to a 'buy' from 'neutral'.
The Uniqlo clothing chain operator said it was confident it could withstand rising costs while it grapples with sluggish sales in its home market.
Nomura Securities also hiked Fast Retailing's target share price to 14,000 yen from 13,000 yen citing positive changes in management that could lead to a sales rebound in winter.
'Our attention is focused on management's change in tack to a back to the basics strategy, where it strengthens basic core products via reductions in the number of products, improves quantity control, and concentrates on Uniqlo,' said analyst Masafumi Shoda in a note to clients.
Fast Retailing was the most actively traded stock by turnover on the Tokyo Stock Exchange's main board and the biggest percentage gainer among the Nikkei 225 components.
0040 GMT
**TORAY INDUSTRIES GAINS ON KOREAN PLANT REPORT**
Shares of Toray Industries Inc, Japan's largest maker of synthetic fibres, gained 1 percent to 519 yen after the Nikkei business daily reported the firm decided on plans to invest around 10 billion yen ($120.7 million) to construct a carbon fibre plant in South Korea.
The plant will be the first overseas carbon fibre production base set up by a Japanese company outside the U.S. and Europe. Toray aims to launch operations at the new facility around the latter half of 2012 or 2013, the daily said.
0020 GMT
(Reporting by Antoni Slodkowski and Ayai Tomisawa; Editing by Edwina Gibbs) ((antoni.slodkowski@thomsonreuters.com; Reuters Messaging: antoni.slodkowski.reuters.com@reuters.net; +813 6441 1130)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))
($1=82.82 Yen) Keywords: MARKETS JAPAN STOCKS HOT (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit http://topnews.session.rservices.com * BridgeStation: view story .134 * Reuters Plus: from your WebDSS screen For more information on Top News, visit http://topnews.reuters.com) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The following stocks were on the move:
**KUBOTA CORP RISES ON OVERSEAS EXPANSION REPORT**
Farming equipment maker Kubota rose 1 percent to 819 yen after the Nikkei business daily said that it will set up a sales branch in Africa by year's end to kick off marketing of farm machinery.
Quoting Chairman and President Yasuo Masumoto, the daily said that Kubota will decide on specifics later, including personnel, where to set up shop and the type of operations.
Due to poor growth prospects at home, Kubota also intends to begin selling agricultural and construction machinery in Russia and Eastern Europe, the paper said.
0551 GMT
**DAIKIN FALLS, SAYS CONSIDERING GOODMAN BUYOUT**
Daikin erased gains and fell 2.7 percent to 2,881 yen after the company's CEO said it is considering buying out U.S. rival Goodman Global in what could be a $4 billion deal.
'The deal itself has been widely expected, but the fact that the company is announcing this triggered concerns about possible financing risk,' said a fund manager who asked not to be named. 'The market has expected that Daikin would raise capital sooner or later, so even if it is planning it, it's not a surprise. But the market has become more alert.'
CEO Noriyuki Inoue told reporters that there was no need to rush, however, and that one strategy would be to buy shares in Goodman after any future IPO. Goodman Global withdrew a filing for an IPO in November.
A source familiar with the situation said last month that Daikin, the world's second-largest maker of air-conditioners, was one of several parties interested in buying unlisted Goodman Global in a possible $4 billion transaction.
0525 GMT
**TOSHIBA CORP UP AFTER DEUTSCHE HIKES RATING**
Toshiba gained 1.2 percent to 492 yen after Deutsche Securities hiked its rating to 'buy' from 'hold.'
'We expect growth in the NAND flash business, higher industrial systems profits, and company-wide fixed-cost cuts to improve Toshiba?s profits,' analyst Takeo Miyamoto wrote in a research report.
The brokerage raised its operating profit outlook for Toshiba the year ending March to 280 billion yen from 260 billion yen.
It also hiked the company's target price to 600 yen from 430 yen.
0508 GMT
**TOYOTA CLIMBS ON J.P.MORGAN UPGRADE**
Shares in the world's No.1 automaker, Toyota Motors Corp, gained 1.3 percent to 3,580 yen after J.P.Morgan hiked the company's rating to 'neutral' from 'underweight' on a predicted rebound in the U.S. economy and earnings recovery in the fiscal year to March 2012.
'With the US economy recovering and Japanese auto sales facing less risk of a major decline, we think it is increasingly likely that the auto markets of the developed world will bottom out,' analyst Kohei Takahashi wrote in a note to clients.
The report added, however, the stock is unlikely to strongly outperform the auto sector, as its Japan operations, remain plagued by deteriorating earnings from exports and excess production capacity.
'Risks include a faster-than-expected decline in quality-related costs, yen depreciation and slower-than-expected improvement in domestic earnings.'
Toyota was the third most actively traded share on the Tokyo Stock Exchange's main board by turnover.
0200 GMT
**CHIPMAKERS JUMP AS INTEL'S RESULTS BEAT ESTIMATES**
Shares of Elpida Memory Inc and other chip-related stocks gained after revenue and margin forecasts of Intel Corp , the world's largest chipmaker, beat expectations on healthy technology spending on Thursday.
Elpida jumped 2 percent to 1,091 yen and chip gear maker Tokyo Electron Ltd gained 3.4 percent to 5,560 yen.
The maker of semiconductor grinding and cutting equipment, Disco Corp rose 2 percent to 5,130 yen while silicon wafer-maker Sumco jumped 3.4 percent to 1,283 yen. Tokyo Electron and Sumco were among the top percentage gainers on the Nikkei 225.
0108 GMT
**FAST RETAILING JUMPS AFTER OUTLOOK KEPT, NOMURA RATING HIKE**
Shares of Fast Retailing jumped 5.5 percent to 12,800 yen in heavy trade, after the firm kept its annual profit forecast intact despite an 18.4 percent tumble in first-quarter operating profit and as Nomura Securities hiked the firm's rating to a 'buy' from 'neutral'.
The Uniqlo clothing chain operator said it was confident it could withstand rising costs while it grapples with sluggish sales in its home market.
Nomura Securities also hiked Fast Retailing's target share price to 14,000 yen from 13,000 yen citing positive changes in management that could lead to a sales rebound in winter.
'Our attention is focused on management's change in tack to a back to the basics strategy, where it strengthens basic core products via reductions in the number of products, improves quantity control, and concentrates on Uniqlo,' said analyst Masafumi Shoda in a note to clients.
Fast Retailing was the most actively traded stock by turnover on the Tokyo Stock Exchange's main board and the biggest percentage gainer among the Nikkei 225 components.
0040 GMT
**TORAY INDUSTRIES GAINS ON KOREAN PLANT REPORT**
Shares of Toray Industries Inc, Japan's largest maker of synthetic fibres, gained 1 percent to 519 yen after the Nikkei business daily reported the firm decided on plans to invest around 10 billion yen ($120.7 million) to construct a carbon fibre plant in South Korea.
The plant will be the first overseas carbon fibre production base set up by a Japanese company outside the U.S. and Europe. Toray aims to launch operations at the new facility around the latter half of 2012 or 2013, the daily said.
0020 GMT
(Reporting by Antoni Slodkowski and Ayai Tomisawa; Editing by Edwina Gibbs) ((antoni.slodkowski@thomsonreuters.com; Reuters Messaging: antoni.slodkowski.reuters.com@reuters.net; +813 6441 1130)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))
($1=82.82 Yen) Keywords: MARKETS JAPAN STOCKS HOT (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit http://topnews.session.rservices.com * BridgeStation: view story .134 * Reuters Plus: from your WebDSS screen For more information on Top News, visit http://topnews.reuters.com) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.