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Japan Hot Stocks-Honda, Toyota, Canon, banks

TOKYO, Oct 30 (Reuters) - The following stocks are on the move on Wednesday.

**HONDA REBOUNDS AFTER DEEP PLUNGE

Honda Motor Co Ltd up 2.97 percent at 4,510 yen, rebounding after a downward earnings forecast revision and two investment ratings cuts had sent shares in Japan's second-largest automaker down 13 percent on Tuesday.

Honda on Monday had posted record results for the half year ended in September, but undershot many analysts' expectations with its performance and unsettled investors by cutting its full-year forecasts for operating and net profit.

Some analysts said that selling of Honda shares on Tuesday had been overdone, with the automaker having a shot at hitting with relative ease a new full-year forecast seen by some as conservative.

Honda rival Toyota Motor Corp was down one percent at 2,970 yen ahead of its first-half earnings announcement later on Wednesday.

0110 GMT

**CANON UP ON STRONG EARNINGS**

Canon Inc up 3.01 percent at 4,450 yen after the camera and office equipment maker on Tuesday posted a more than 50 percent rise in net profit for the July-September quarter on strong sales of digital cameras.

Canon said it expects full-year profits to hit a record for the third straight year, forecasting a group net profit for calendar 2002 of 175 billion yen ($1.42 billion), up from a forecast of 168 billion yen it made in July.

0102 GMT

**UFJ LEADS BANKS UP ON EXPECTED REFORM BACKTRACK**

Banking shares are up, on expectations that a key policy package to be released later in the day will significantly water down pledged reforms to clean up at least 52 trillion yen ($422.6 billion) in bad loans.

UFJ Holdings Inc , the smallest of Japan's four megabanks and considered the weakest by analysts, up 5.81 percent at 164,000 yen.

The world's biggest bank by assets, Mizuho Holdings Inc , up 4.29 percent at 171,000 yen. Sumitomo Mitsui Banking Corp up 1.63 percent and Mitsubishi Tokyo Financial Group Inc up 0.88 percent at 807,000 yen.

"Talk of a postponement of limiting the use of deferred tax accounting has forced investors to cover short positions in banking shares," said Masaaki Higashida, deputy general manager of investment information at Nomura Securities.

The measure had been expected to force banks to raise their loan-loss reserves significantly, which would erode their capital and possibly lead to an injection of public funds and nationalisation of weaker operators.

0050 GMT

**FUJITSU DOWN AFTER POSTING MORE RED INK**

Fujitsu Ltd down 5.19 percent at 420 yen after Japan's biggest computer maker said on Tuesday it would stay in the red this business year as the IT slump spurred further costly job cuts and saddled it with a hefty second-quarter loss.

The electronics and IT conglomerate -- also Japan's fifth-largest chipmaker -- posted a net loss for the July-September quarter of 91.01 billion yen ($739.5 million), compared with a loss of 119.28 billion yen a year earlier.

Fujitsu forecast a 110 billion yen net loss for the full year to March, giving up on its prior target of breaking even and extending last year's record 382.5 billion yen in red ink.

0035 GMT **SKYMARK ASK-ONLY AFTER NEW ISSUE CANCELLED** Skymark Airlines Co Ltd ask only at 83,000 yen, or down 5.7 percent, after the fledgling Japanese carrier said on Tuesday it had cancelled plans to issue new shares to a unit of Germany's Commerzbank AG because it did not receive payment for the new shares.

The issue had been aimed at boosting capital for the six-year-old airline. Last month, Skymark said it was raising capital by issuing new shares worth about three billion yen ($24.38 million) to investors, two-thirds of them to Commerzbank (South East Asia) Ltd, a wholly owned unit of Germany's third-largest bank.

The other new shares were planned to be issued to Skymark's main shareholder, Japanese discount travel agent H.I.S Co Ltd , which would thus retain its one-third stake in the company.

As a result of the Commerzbank decision, Skymark said it had also cancelled its issuance of new shares to H.I.S.

0024 GMT ($1=123.06 yen)