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Japan Hot Stocks-Toyoda Gosei, banks, Benesse, ITX, Isuzu

TOKYO, Oct 28 (Reuters) - The following stocks are on the move on Monday. **TOYODA GOSEI HITS 2002 HIGH AHEAD OF EARNINGS**

Car parts and high-tech components maker Toyoda Gosei Co up 2.54 percent at 2,620 yen after marking a year-to-date high of 2,660 yen on expectations it will raise its full-year earnings forecasts when it unveils first-half results later in the day.

Earlier in the month, Toyoda Gosei revised up its forecasts for the first half ended September 30 thanks to brisk auto exports and demand for light-emitting diodes used in cellphones.

The company left its full-year forecasts unchanged. 0130 GMT

**BANKS FALL ON CAUTION AHEAD OF POLICY PACKAGE**

Banking shares down, reversing course after Friday's gains amid investor caution ahead of a government package scheduled for Wednesday that will focus on cleaning up the nation's bad-loan problem and could significantly hurt banks' capital.

Mitsubishi Tokyo Financial Group down 1.61 percent at 792,000 yen, Mizuho Holdings Inc down 3.07 percent at 158,000, and UFJ Holdings Inc down 3.16 percent at 153,000 after the previous session's rise of 1.3 percent.

"Investors are waiting for the package, so there's not heavy selling (in banking shares). Bank stocks are falling in line with the futures market," said Terushi Hirotama, head of trading at Ichiyoshi Securities. "The lack of support from bank heads for the package seems to be weighing on bank shares, though."

Japan's chief banking regulator, Heizo Takenaka, met again on Monday morning with heads of the country's top banks. Banks have expressed opposition to some of his proposals that could slash their capital and lead to another infusion of public funds. 0120 GMT **BENESSE DOWN BY LIMIT ON PROFIT WARNING**

Benesse Corp down by its daily limit of 300 yen or 17.75 percent at 1,390 yen on the Osaka Securities Exchange.

After the market closed on Friday, Japan's biggest provider of distant-learning courses cut its full-year group recurring profit forecast to 11.4 billion yen ($91.71 million) from 20.8 billion previously. Benesse also lowered its net profit forecast to five billion yen for the year to March, down from 11.2 billion. 0115 GMT

**ITX TUMBLES 12 PCT AFTER SLASHING H1 FORECAST**

ITX Corp down 11.94 percent or 16,000 yen at 118,000 after the info-tech unit of trading company Nissho Iwai Corp slashed its earnings forecast on Friday.

After the close on Friday, ITX said it expects to have made a group net profit of 500 million yen ($4.02 million) for the six months ended September 2002, compared to its initial projection for net profit of 2.20 billion.

Sales are seen at 163.10 billion for the half year, down from a previous estimate of 180 billion. 0045 GMT **ISUZU MOTORS DOWN ON PROFIT-TAKING AFTER 27 PCT SURGE**

Isuzu Motors Ltd down 12.77 percent or 6 yen at 41, hit by profit-taking after the truckmaker's shares soared 27 percent on Friday due to a media report Isuzu had won final agreement from its banks and partner General Motors Corp for an aid package including about $800 million in debt-equity swaps.

Isuzu confirmed the report on Friday after the close, but also slashed earnings forecasts, saying it now expected to fall deep into the red for the fourth straight year due to restructuring losses and would quit its U.S. sports utility vehicles (SUV) joint venture to focus on core operations.

Isuzu's shares were the most active by volume on the first section of the Tokyo Stock Exchange. 0030 GMT

**FANUC UP FOR 4TH DAY ON HIGHER EARNINGS FORECAST**

Fanuc Ltd up 2.65 percent at 5,040 yen, rising for the fourth straight session after the firm said on Friday it posted a small rise in half-year group net profit and raised its full-year forecasts on strong sales of its robotic factory equipment.

Fanuc, the world's largest maker of industrial robots, said group net profit rose 4.1 percent to 19.6 billion yen ($157.7 million) for the six months ended in September despite a 17 percent fall in revenue from a sharp decline in sales for factory automation equipment.

For the full-year to March, it revised up full-year group net profit estimates to 37 billion from an earlier 21.8 billion yen forecast. Fanuc also raised its 2002/03 sales forecast by 13.1 percent to 207 billion yen.

Fanuc's shares have now gained 13 percent in four trading days including Monday, outperforming the Nikkei average , which has given up about four percent. 0025 GMT **DAIWA UP AFTER HI PROFIT RISE, NIKKO UNCHANGED**

Daiwa Securities Group Inc up 2.86 percent or 15 yen at 540 after Japan's second-biggest brokerage unveiled on Friday a solid rise in first-half recurring profit as cost-cutting benefits helped partially ease the pain of a moribund stock market.

Daiwa's group recurring profit -- which excludes extraordinary items and is a key gauge of the health of brokerages' mainstay operations -- totalled 15.57 billion yen ($125.3 million) for the period, compared to 1.18 billion yen profit a year earlier.

Third-ranked Nikko Cordial Corp unchanged at 518 yen after it posted a recurring profit of 29.61 billion yen for the half year compared to 693 million yen a year ago, helped by a 15 billion yen gain from deals linked with the establishment of exchange-traded funds (ETFs) worth 1.1 trillion yen. 0010 GMT ($1=124.29 yen)