TOKYO, Dec 14 (Reuters) - The Nikkei average eased 0.4 percent and the broader TOPIX dipped 0.1 percent on Friday morning.

The following stocks were on the move:

**DENA FALLS AFTER GOLDMAN SACHS DOWNGRADE**

DeNA Co Ltd shed 2.1 percent to 2,883 yen after Goldman Sachs downgraded the social gaming company to 'sell' from 'neutral', citing downside risk as the market was 'overly' optimistic of profit contribution from its overseas business following its second-quarter results.

'We expect flat quarter-on-quarter profits starting from the 3Q, with risk biased to the downside. We make minor revisions to our FY3/14-3/15 operating profit forecasts as our negative outlook is largely unchanged, and accordingly keep our 2,300 yen target price,' the brokerage said.

DeNA has risen 25.3 percent this year, outpacing a 9.7 percent rise in the Topix.

0153 GMT

**SHARP EXTENDS GAINS ON SHORT-COVERING, J.P. MORGAN CAUTIOUS**

Sharp Corp climbed 4.4 percent to 261 yen, extending recent gains on short-covering after the struggling TV maker said earlier this month that U.S. chipmaker Qualcomm Inc will invest $120 million in the Japanese company.

The stock has rallied 51.7 percent so far this month, outperforming the broader market as investors cut their bearish bets on Sharp.

J.P. Morgan remained cautious on Sharp.

'Specific measures to rebuild the company's finances such as improving the net debt/equity ratio, which reached 434 percent at end-September, and securing the 200 billion yen needed to redeem an outstanding CB scheduled for September 2013 will need to be dealt with, and we caution against over-optimism from a stock investment standpoint,' the brokerage said in a note.

It kept its 'underweight' rating and price target of 115 yen.

Short-selling interest in Sharp has fallen lately, although it still remains high, with 92.05 percent of its stock that is available to be borrowed out on loan as of Dec. 12, down from 92.92 percent on Dec. 7, according to data provider Markit.

0128 GMT

**CALSONIC KANSEI, AISIN SEIKI DOWN ON BROKER DOWNGRADE**

Auto parts makers Aisin Seiki Co Ltd and Calsonic Kansei Corp lost 1.7 and 3.4 percent, respectively, after Morgan Stanley MUFG downgraded its ratings on the companies.

Morgan Stanley MUFG cut its rating on Aisin Seiki to 'underweight' from 'equal-weight' and reduced its price target to 2,250 yen. The stock was quoted at 2,473 yen.

It lowered Calsonic Kansei's rating to 'equal-weight' from 'overweight' and cut its price target to 420 yen from 450. Calson Kansei was traded at 375 yen.

'A weaker yen is positive but we do not see industry earnings growing while non-U.S. autos demand remains uncertain and costs to offshore production rise,' Morgan Stanley MUFG analyst Shinji Kakiuchi wrote in a report.

'We downgrade Aisin to underweight as spending to bolster foundations hurts the F3/14 profit outlook. Favour selectivity based on stock-specific positive.'

Kakiuchi upgraded Keihin Corp to 'equal-weight' from 'underweight' and lifted its price target to 1,050 yen from 950. Keihin was up 0.1 percent at 1,189 yen.

The brokerage also cut the price target on a number of auto parts makers, including Denso Corp, Exedy Corp and Toyota Industries Corp.

Denso slipped 0.7 percent to 2,751 yen, Exedy lost 1.5 percent to 1,796 yen and Toyota Industries eased 0.8 percent to 2,442 yen.

0028 GMT

(Reporting by Dominic Lau; Editing by Anupama Dwivedi and Prateek Chatterjee) Keywords: MARKETS JAPAN STOCKS HOT/

(dominic.lau@thomsonreuters.com)(+81 3 6441 1917)(Reuters Messaging: dominic.lau.thomsonreuters@reuters.net)

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