Japan Hot Stocks-Paper makers, AOC, construction, banks, Sapporo
TOKYO, Feb 18 (Reuters) - The benchmark Nikkei average .N225 fell 1.5 percent and the broader TOPIX was 1.1 percent lower as of 0421 GMT on Wednesday.
The following stocks were on the move: **OJI PAPER (3861.T), OTHER PAPER MAKERS DOWN ON UBS DOWNGRADE**
Shares of Oji Paper Co and other paper makers fell after UBS cut its ratings on the sector to "neutral" from "bullish", citing expectations that lower wholesale prices for printing and writing (P&W) paper will slice into their profits.
UBS cited a recent report by the Nikkei newspaper showing that wholesale prices had fallen slightly, marking the first decline since summer.
"The pulp/paper industry is most sensitive to P&W paper prices so lower prices inflict major earnings damage," UBS said in a report to clients.
Shares of Oji, Japan's largest paper maker, fell 4.4 percent to 389 yen, while No. 2 ranked Nippon Paper Group (3893.T) dropped 1 percent to 2,410 yen. Hokuetsu Paper Mills (3865.T) slipped 1.4 percent to 413 yen. 0421 GMT **AOC HOLDINGS 5107.T UP ON NORTH SEA OIL STAKES**
Shares of AOC Holdings rose 5.9 percent to 540 yen after the oil firm said it would acquire 10 percent stakes in two oil blocks in the Norwegian sector of the North Sea from Canada's Talisman Energy (TLM.TO).
Acquisition and investment costs are expected to be around $100 million, AOC representatives said. [ID:nT170048] 0404 GMT **CONSTRUCTION FIRMS JUMP ON HOPES FOR PUBLIC INVESTMENT**
Shares of construction firms jumped on market expectations for demand from public investment as the Japanese government tries to shore up the ailing economy.
Obayashi Corp (1802.T) gained 4 percent to 438 yen, while Shimizu Corp (1803.T) climbed 3.2 percent to 385 yen. Kajima Corp (1812.T) shot up 4.8 percent to 220 yen. 0131 GMT **BANKS SLIDE ON WORRIES ABOUT EUROPEAN PEERS*
Japanese banking stocks declined due to deepening worries about the financial sector after Moody's Investors Service said banks could be hit by the recession in Eastern Europe. [ID:nLH423223]
Mitsubishi UFJ Financial Group (8306.T), Japan's top lender, shed 2.7 percent to 439 yen, while No. 2 bank Mizuho Financial Group (8411.T) retreated 2 percent to 196 yen. Sumitomo Mitsui Financial Group (8316.T) lost 4 percent to 3,140 yen. 0127 GMT **SAPPORO HOLDINGS (2501.T) BATTERED AFTER U.S. FUND ENDS BID**
Sapporo shares sank 7.9 percent to 351 yen after U.S. fund Steel Partners withdrew a $548 million bid to raise its stake in the Japanese brewer to a third, citing the beer maker's deteriorating earnings.
The stock closed down 9.7 percent at 381 yen ahead of the announcement on Tuesday, less than half of the Steel Partners offer price. [ID:nT309432] 0019 GMT **TOYOTA MOTOR CORP (7203.T) FLAT AFTER REPORT TO BOOST OUTPUT**
Toyota shares were flat at 3,010 yen after the Nikkei business daily reported it plans to boost production in Japan by about 30 percent in May compared with the monthly output of the three preceding months as inventories fall. [ID:nN17355462]
The stock outperformed a 0.8 percent fall in the transport equipment subindex .ITEQP.T. 0007 GMT (For IPO news, data and diary, click <JP/IPOMENU>, for stocks click [.T]) (Reporting by Aiko Hayashi)
