TOKYO, Aug 26 (Reuters) - The following stocks are on the move on Monday.
**AEON MALL DOWN AFTER MERRILL RATING**
Aeon Mall Co Ltd down 0.62 percent at 3,190.
Shares in the shopping mall operator and developer affiliated with leading retailer Aeon Co Ltd were soft after Merrill Lynch initiated coverage with an intermediate-term rating of "neutral".
Analyst Atsuko Okumura cited the fact that the company's shares had already put on 28 percent since its public offering on the Tokyo Stock Exchange last month.
However, the brokerage gave the stock a long-term rating of "buy". 0529 GMT
**DAIWA INDUSTRIES DOWN AFTER POSTING H1 LOSS**
Daiwa Industries Ltd down 6.47 percent at 318 yen after the maker of freezers and refrigerators for liquor stores posted on Friday a group net loss of 1.09 billion yen for the six months ended June on sales of 10.97 billion yen.
It was the biggest loser by percentage on the first section.
The company, citing expectations that consumer spending will remain sluggish, sees a group net loss of 4.45 billion yen for the full year to December 2002 on sales of 21 billion yen. 0520 GMT
**ASAHI GLASS UP FOR FIFTH STRAIGHT SESSION**
Asahi Glass Co Ltd up 4.14 percent at 754 yen, hitting a one-month high and extending a winning streak to five sessions.
Shares in the Japanese glassmaker are being snapped up on hopes that increased production of components used in liquid crystal displays (LCDs) and plasma display panels (PDPs) will boost profits, traders said.
Japanese chamical makers are seen boosting output of such components to meet growing demand in China. 0454 GMT
**NIPPON MEAT UP ON PLAN TO RETHINK DISCIPLINARY MEASURES**
Nippon Meat Packers Inc up 5.56 percent at 1,024 yen.
Nippon Meat, also known as Nippon Ham, said on Monday it planned to hand in revised disciplinary measures to the farm ministry after its initial plan was deemed too lenient, sparking hopes that the worst was over for the troubled sausage maker.
Last week, the company said its founder and chairman, Yoshinori Ohkoso, would step down and become honorary chairman, while its president would be demoted to help restore public trust in the company after a beef mislabeling scandal.
Nippon Ham shares have recovered 30 percent from the 16-year lows to which they plunged earlier this month.
"Unlike the case of Snow Brand Milk, Nippon Ham hasn't caused any real damage to consumers so I think it shouldn't take so long for them to regain trust once they've dealt with those responsible for the scandal," said Ken Masuda, senior dealer at Shinko Securities.
"The stock should recover to around 1,150 yen in the near term," he added. 0430 GMT
**CYBOZU UP AFTER DEUTSCHE STARTS COVERAGE WITH "BUY"**
Software developer Cybozu Inc up 8.79 percent or 21,000 yen at 260,000 after Deutsche Securities said it had initiated coverage on the stock with a "buy" rating and a target price of 350,000 yen.
In a note to clients, analyst Hideki Goto said that given Cybozu's growth potential the stock was undervalued at the current price-to-earnings ratio of about 20 based on its profit forecast for the year to January 2003.
A price-to-earnings ratio of about 30 was more appropriate, Goto wrote. 0332 GMT **RINNAI UP AFTER NOMURA RAISES RATING TO "1"**
Rinnai Corp up 3.4 percent at 2,740 yen after Nomura Securities raised its rating on the maker of gas appliances to "1" from "2", expecting it to outperform the TOPIX index by more than 15 percentage points over the next six months. 0200 GMT **JAPAN TELECOM FALLS ON PRICING, DECLINING CUSTOMERS**
Shares of Japan's third-largest telecoms carrier, Japan Telecom Holdings Co Ltd, down 3.64 percent or 14,000 yen at 371,000, underperforming a 0.76 percent rise in the communications sector subindex .
The stock's retreat follows a report on Sunday in the Nihon Keizai Shimbun business daily that the company would offer discounts for fixed-line telephone services aimed at small- and medium-sized businesses that could cut costs by up to 60 percent.
Further, the Japan Industrial Journal said on its Web site on Monday that Japan Telecom was rapidly losing customers for the My Line pre-registered telephone carrier service to rival firms.
"It's clear that Japan Telecom is struggling to attract subscribers. My Line customers are falling and its fixed-line business is having a tough time," said Motoharu Sone, senior analyst at UFJ Tsubasa Research Institute.
"This price cut appears to be an attempt to stem the decline in subscribers," he said. 0200 GMT **FURUKAWA ELECTRIC CONTINUES LAST WEEK'S REBOUND**
Furukawa Electric Co Ltd, the world's second-largest fibre-optics maker, up 4.74 percent at 376 yen, extending a 17 percent jump in the previous two sessions as investors cover short positions after last Wednesday's fall to a 2002 low.
"Foreign hedge funds started covering shorts on Furukawa last week and that provided a spark that continues so far today," said Masaru Kazama, head of equities at Nissan Securities.
Furukawa's peers were also higher, with Sumitomo Electric Industries Ltd up 4.48 percent at 793 yen, and Fujikura Ltd up 2.6 percent at 394 yen. 0110 GMT **SUMITOMO COAL UP ON SHARE ALLOCATION TO BANKS** Sumitomo Coal Mining Co up 5.26 percent at 60 yen after the coal distributor said on Friday it would issue preferred shares in a third-party allotment to six creditor banks, including Sumitomo Mitsui Banking Corp , to pay back debts. 0050 GMT **TOKYU DEPARTMENT DOWN AFTER CURRENT FORECAST TURNS RED**
Tokyu Department Store Co Ltd down 3.23 percent or 3 yen at 90 after it revised its parent-only current profit estimate for the six months to July 2002 to a loss of 460 million yen from a profit of 100 million due to a slump in sales.
The department store operator cut its sales forecast on Friday to 119.80 billion yen from 125.20 billion, while revising its net estimate to a profit of 6.77 billion yen from a loss of 1.80 billion after booking a special profit from the sale of land and a building to its parent, Tokyu Corp 0040 GMT
**TOSHIBA MACHINE DOWN AFTER CUTTING FORECAST**
Toshiba Machine Co Ltd down 8.36 percent or 26 yen at 285 after the machine tools maker on Friday cut its earnings forecast for the six months to September and the full year to March 2003 due to poor demand in the United States and Japan.
Toshiba now sees a net profit of 1.10 billion yen ($9.20 million) for the year to next March, compared with a previous estimate for a profit of 1.70 billion, with its sales forecast for the year cut by 10 billion yen to 110 billion. 0025 GMT
**ADVANTEST , CHIP STOCKS DOWN WITH U.S. PEERS**
Advantest Corp, a maker of chip testing devices, down 3.38 percent at 6,280 yen after a six percent tumble on Philadelphia's semiconductor index and paring a seven percent jump on Friday.
Raising concerns about the capital spending outlook for Japan's chip equipment makers, Bear Stearns on Friday cut its earnings estimates on Intel Corp , saying the world's largest chip maker was facing sluggish demand for computers.
Tokyo Electron Ltd , Japan's top maker of chip equipment, down 3.21 percent at 6,040 yen, while the nation's top chipmaker, Toshiba Corp , dropped 1.35 percent to 437. 0015 GMT **NISSAN MOTOR UP ON RECORD PROFIT REPORT**
Nissan Motor Co Ltd up 0.68 percent or 6 yen at 886, outperforming a broad market decline after a newspaper report that Japan's third-largest automaker will likely post a record group operating profit for the first half to September.
The Nihon Keizai Shimbun business daily said on Saturday Nissan will likely post a 48 percent rise in operating profit to 280 billion yen in the six months to September thanks to brisk sales of new models in Japan and the Altima sedan in the U.S. 0003 GMT ($1=119.52 yen)