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Japan Hot Stocks-Paper, Banks, Sony, exporters

TOKYO, June 24 (Reuters) - The following stocks are on the move on Monday: **PAPER MAKERS UP, STRONGER YEN HELPS**

Oji Paper Co Ltd up 3.45 percent or 22 yen at 660 yen, helping push the paper and pulp sector subindex up 2.93 percent.

Paper makers benefit from a stronger yen, which lowers their procurement costs from abroad.

Earlier this month Merrill Lynch raised its view of the Japanese paper industry to "slightly bullish" from "bearish" following the failure of mid-sized paper maker Nippon Kakoh Seishi Co Ltd .

Hokuetsu Paper Mills Ltd up 4.19 percent or 30 yen at 746 yen. 0057 GMT **MEGABANKS DOWN ON BAD-LOAN CONCERNS**

Mizuho Holdings Inc , the world's largest bank by assets, down 3.44 percent or 9,000 yen at 253,000 yen. Rival Sumitomo Mitsui Banking Corp down 3.78 percent or 22 yen at 560 yen.

Major Japanese banks may not be able to meet a deadline imposed by regulators to dispose of their bad loans within three years because of objections from Japanese regional credit agencies, business daily Nihon Keizai Shimbun said on Monday in a report that prompted selling.

Traders say further falls in Japanese stocks would increase losses on banks' massive shareholdings, eroding their capital base and reducing their capacity to write off bad loans. 0035 GMT **SONY , EXPORTERS DOWN ON STRONGER YEN**

Consumer electronics giant Sony Corp, which gets two-thirds of its revenues from overseas, down 1.5 percent or 90 yen at 5,930 yen, hitting a fresh four-month low.

Shares of major tech and auto exporters are losing ground on the stronger yen, which hurts their overseas profits when repatriated into yen. Continuing falls in U.S. stocks and an uncertain outlook for consumer demand are also increasing bearish sentiment, traders say.

In morning Tokyo trade the dollar was trading at 121.63 yen, after hitting a seven-month low of 120.83 yen on Friday.

Toyota Motor Corp down 1.64 percent or 50 yen at 3,000 yen, hitting a 6-month intraday low. 0005 GMT