TOKYO, Feb 25 (Reuters) - The following stocks are on the move on Tuesday. **MITSUBISHI HEAVY , DEFENCE SHARES UP ON N. KOREA**
Mitsubishi Heavy Industries Ltd up 1.24 percent at 321 yen, one of a number of defence-related shares to lure buying after South Korea said that North Korea fired at least one short-range land-to-ship missile into the sea of Japan on Monday.
Koken Ltd , a maker of masks that protect against the effects of chemical and biological weapons, up 1.09 percent at 930 yen. 0550 GMT **BIG BANKS SOLD ON MARKET FALL, ACCOUNTING CONCERNS**
Mizuho Holdings Inc down 6.96 percent at 107,000 yen on concerns the tumbling stock market would boost losses on banks' shareholdings. Mitsubishi Tokyo Financial Group down 4.46 percent at 536,000 yen after a record low of 532,000 yen.
Analysts said a report in the Asahi Shimbun newspaper that the Japanese Institute of Certified Public Accountants would ask bank auditors to tighten the rules on the use of deferred tax assets (DTAs) as bank capital was also hurting bank stocks.
The newspaper said the president of the accountants group would ask that the period during which banks are allowed to count DTAs -- future refunds on taxes that the banks expect to get based on the cost of writing off bad loans -- be shortened. 0530 GMT **SEGA HITS RECORD LOW ON SAMMY MERGER**
Sega Corp down 3.43 percent at 648 yen after hitting a record low of 641 yen. Shares of the software game maker have fallen nearly 30 percent since it announced plans on February 13 to merge with pinball-style "pachinko" machine maker Sammy Corp.
"Even after the recent dive, I still think Sega's stock has plenty of room to fall. There are many potential negatives from this merger for Sega, the biggest being its effect on Sega's valuation," said Shunji Yamashina, analyst at Morgan Stanley.
"I think Sega's stock will fall until its valuation is in line with pachinko firms. Sammy has a PER (price-to-earnings ratio) of about five. I think there is a high possibility that investors will value Sega with a PER of about five as well."
Yamashina also said that Sega employees were most likely opposed to the merger with Sammy, depressing their motivation level at work. He said that it was possible Sega could as a result suffer from a flight of talent out of the firm.
Sammy down 2.56 percent at 2,095 yen after marking an all-time low of 2,085 yen.
0455 GMT **CLARION HITS 17-MONTH HIGH AS BLUE CHIPS FALL**
Clarion Co Ltd, a maker of car stereos and navigation equipment, up 2.21 percent or four yen at 185 yen, the second-most active issue on the first section in volume terms. The stock earlier hit a 17-month high of 193 yen.
The stock has almost tripled in value this year due to a recovery in earnings at the company and thanks to a shift of money out of blue chips such as Sony Corp that have been under pressure on war fears and other factors.
"With blue chips weak, money is flowing into liquid, low-priced shares. Clarion is benefitting from that trend," said a dealer at a mid-tier brokerage, adding that heavy buying of Clarion's stock was seen through Credit Suisse First Boston. 0430 GMT
**SUN WAVE DOWN ON LOSS FORECAST**
Sun Wave Corp down 15.09 percent at 135 yen, the biggest loser by percentage on the Tokyo Stock Exchange's first section.
On Monday, the maker of sinks, bath tubs and gas ranges cut its group net outlook for the year to March to a loss of 1.27 billion yen from its earlier forecast that it would break even. It lowered its sales estimate to 84.7 billion yen from 89 billion. 0415 GMT **SONY , BLUE CHIPS DOWN AMID SECURITY CONCERNS**
Consumer electronics giant Sony Corp down 1.09 percent at 4,530 yen, falling with other blue chips after Tuesday's news that North Korea had test-fired a missile into the Sea of Japan.
Sony, the most active issue by value, earlier hit a 16-month low of 4,510 yen.
Toyota Motor Corp , Japan's biggest auto maker, down 1.91 percent at 2,820 yen and copier and camera maker Canon Inc down 1.62 percent at 4,260.
Analysts had been expecting them to fall anyway following a sharp decline on Wall Street and the dollar's drop to a one-month low of 117.55 yen in New York. 0158 GMT **SEIYU DOWN AFTER IT EXPANDS LOSS ESTIMATE**
Retailer Seiyu Ltd, an affiliate of Wal-Mart Stores Inc , down 35 yen or 11.48 percent at 270 yen.
Late on Monday, the company expanded its loss forecast for the year to end-February to 83 billion yen ($704 million), on a group basis, compared with a loss of 21 billion yen previously. After the warning, UBS Warburg cut its target price on the stock to 100 yen from 200 yen although it kepts its "reduce" rating. 0118 GMT **SANKYO ALUMINIUM UP ON INTEGRATION WITH TATEYAMA**
Sankyo Aluminium Industry Co Ltd up 4.86 percent at 151 yen after the aluminium sash maker announced on Monday that it and Tateyama Aluminium Industry Co Ltd would integrate under a holding company in December.
Sankyo said the move was aimed at cutting costs and boosting competitiveness amid poor demand for construction materials. The new company will aim to save 12 billion yen ($102 million) annually and shoot for pre-tax profit of 19 billion yen by the 2006/07 year.
Sankyo is forecasting a pre-tax profit of 8.00 billion yen for the current year to March.
Shares of Tateyama last traded at 150 yen, up 3.5 percent compared to its close of 145 yen on Friday last week. An illiquid issue, the stock did not trade on Monday. 0100 GMT **RIGHT ON UP AFTER IT RAISES EARNINGS FORECAST**
Right On Co Ltd, a casual wear retailer, up 99 yen or 8.53 percent at 1,260 yen, the biggest percentage gainer in the retail sector .
Late on Monday, the company raised its parent-only net profit forecast for the six months to February 20, 2003, to 1.45 billion yen ($12.3 million) from 750 million yen previously. 0043 GMT **PIONEER UP AFTER REPORT ON 03/04 EARNINGS ESTIMATE**
Pioneer Corp, the world's top maker of car audio equipment, up 80 yen or 3.24 percent at 2,550 yen, a nine-month high.
The Nihon Keizai Shimbun reported that Pioneer expects group operating profit to rise 32 percent to 45 billion yen ($382 million) in the next business year to March 2004 compared with its forecast for 34 billion yen this year.
Brisk demand for plasma-display televisions and car navigation systems will drive the profit growth, the newspaper said. 0031 GMT **SUMITOMO RUBBER UP ON STRONG EARNINGS***
Sumitomo Rubber Industries Ltd, Japan's third-largest tyremaker, up 14 yen or 3.02 percent at 478 yen, compared with a 1.03 percent fall in the TOPIX index .
Sumitomo, 10 percent owned by Goodyear Tire & Rubber Co , said on Monday it returned to the black in 2002 with a record group net profit on brisk exports to the United States and Asia, a weak yen, and cost cutting. 0020 GMT ($1=117.82 yen)