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Japan Hot Stocks-Yamato Transport, banks

TOKYO, June 3 (Reuters) - The following stocks are on the move on Monday. **YAMATO TRANSPORT HITS 10-MONTH HIGH, CSFB UPGRADES**

Yamato Transport Co Ltd, Japan's top parcel delivery firm, up 55 yen or 2.24 percent at 2,505, compared with a 0.87 percent rise in the Nikkei average.

The stock earlier hit a 10-month high of 2,540 yen.

Credit Suisse First Boston raised its target price to 2,900 yen from 2,600, citing the company's advanced position in Japan's transport sector after it doubled the number of branches and installed a new computer system while cutting costs aggressively. 0353 GMT


Mitsubishi Tokyo Financial Group Inc up 5.7 percent at 1.02 million yen, helping the sector subindex put on 3.27 percent.

Investors are hoping a pick-up in the domestic economy will help ease Japanese banks' massive bad-loan problem, traders said. Q1 GDP data to be unveiled on Friday should back up the view that the economy has hit bottom, economists have said.

"We expect the banking sector will continue to show upward momentum, not because the fundamental position at the banks has improved at all, but in the absence of any fresh bad news," said Brian Waterhouse, analyst at HSBC Securities.

"I think there is a fair amount of dealing going on. There has been some foreign buying, just edging up positions a little bit."

UFJ Holdings Inc , however, fell 0.27 percent to 369,000 yen. A huge spike in bad debt at Japan's smallest megabank in 2001/02 when it unveiled earnings in May led to a number of analyst downgrades on UFJ's stock. 0150 GMT **NIPPON STEEL , SECTOR FIRM ON PRICE HIKE HOPES**

Nippon Steel Corp, the world's second-largest steelmaker, up 1.49 percent or 3 yen at 205, Kawasaki Steel Corp , Japan's third-largest steelmaker, up 2.53 percent at 162 yen.

Japan's steelmakers said last Friday they wanted to hold talks with domestic automakers about raising sheet steel prices to boost revenue as they struggle to return to profitability, and traders said investors were continuing to cheer the move.

Separately, the Nihon Keizai Shimbun said on Monday that NKK Corp and Kawasaki will consolidate production of construction materials and steel plate, while accelerating cost-cutting ahead of their business integration in September.

NKK unchanged at 120 yen. 0110 GMT


KDDI Corp up 9.5 percent or 42,000 yen at 484,000, after jumping by its daily-limit of 50,000 yen at one point to a 10-month high of 492,000 yen. By comparison, the communications sector subindex was up 0.57 percent.

"Compared to NTT DoCoMo Inc , KDDI's sales growth in mobile services is looking strong and attracting investors," said Norihiro Fujito, senior strategist at Kokusai Securities.

Daiwa Securities, Japan's second-largest brokerage, said on Monday it had added KDDI to its recommended portfolio for individual investors, citing brisk sales of mobile services and an undervalued share price. 0100 GMT **NISSAN , PEERS UP AFTER YEN STABILISES**

Nissan Motor Co Ltd, Japan's third-biggest automaker, bid-only at 901 yen, up 20 yen or 2.27 percent.

Concerns that a further rise in the yen could eat into exporter earnings hit Nissan, which lost almost nine percent in its past three-day losing streak, and its peers last week.

But given the Japanese authorities' strong desire to prevent a surging yen from hurting exporters, as shown by repeated market intervention on Friday, the Japanese currency has stabilised.

The dollar was around 124.45 yen early Monday morning after hitting a six-month low of 122.82 yen last Thursday.

Nissan's bigger rival Honda Motor Co Ltd was up 90 yen or 1.7 percent at 5,390. 0012 GMT **SOTEC BID-ONLY ON REPORT OF TIE-UP WITH SONY**

Sotec Co Ltd bid-only with no sellers at 185,000 yen, 3.4 percent above Friday's close of 179,000 yen.

The Nihon Keizai Shimbun business daily said on Sunday the computer retailer and electronics giant Sony Corp plan to tie up in the PC business, using a common memory medium and possibly sharing software.

Sony down 0.83 percent or 60 yen at 7,140. 0008 GMT