Japanese stocks seen rising after U.S. gains

TOKYO, June 1 (Reuters) The Nikkei average is expected to rise on Thursday, recovering from three-month lows, as a gain in U.S. stocks helps soothe investor concerns about a slowdown in the world's biggest economy.

Sentiment is likely to improve after Chicago-traded Nikkei futures reversed the previous day's steep fall. Nikkei futures contracts expiring in June closed at 15,665, a rise of 195 points from the Osaka finish.

''The market may gain momentum if the Nikkei clears its closing level in Chicago,'' said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.

But he added that unless new money flows into the market, price gains may be limited.

Traders expect the Nikkei to move between 15,500 and 15,700 on Thursday. It posted its biggest one-day percentage fall in five weeks on Wednesday, losing 2.47 percent to 15,467.33.

Recent falls in small-cap shares have undermined demand for stocks, in particular from individual investors, while foreign investors, whose active buying was behind the Nikkei's 40 percent rise last year, have become net sellers of Japanese shares in the past weeks.

U.S. stocks rose on Wednesday, recouping some of the previous day's sharp losses, as a drop in crude oil prices overshadowed renewed concerns about higher interest rates.

STOCKS TO WATCH -- Monex Beans Holdings Inc.

Japan's securities watchdog called on Wednesday for penalties against the online brokerage for failing to register some clients' employment ties with listed firms.

-- Toshiba Corp.

The world's fourth-largest semiconductor maker said on Wednesday it would spend over 50 billion yen (0 million) in the next five years to build a new factory in Japan to make power microchips.

-- NTT DoCoMo Inc.

Japan's biggest mobile phone operator will introduce later this year improved search engine functionality enabling cellphone users to surf the Internet as if using a PC, President Masao Nakamura told Reuters in an interview on Wednesday.

-- Park 24 Co. Ltd. and other car park operators.

Drivers are expected to use car parks more often following a tightening of rules on illegal parking, which come into effect on Thursday.

Reuters VJ VP0515