Japan stocks may fall on New York drops, futures

TOKYO, June 6 (Reuters) The Nikkei average is expected to fall on Tuesday, with shares in technology stocks leading the declines after concerns about further interest rate rises drove similar U.S. stocks lower.

Selling of futures may also lead to falls in stock prices after Chicago-traded Nikkei futures posted a steep decline.

Nikkei future contracts expiring in June closed at 15,500, a fall of 180 points from the Osaka finish.

''Given the drop in U.S. stocks and Chicago futures there is a good chance the market will attempt to test recent lows,'' said Hiroichi Nishi, a general manager of equity marketing at Nikko Cordial Securities.

''After a decline of 180 points compared with Osaka, futures contracts are likely to fall here. That could trigger selling of stocks themselves.'' Investors are likely to largely ignore news that high-profile fund manager Yoshiaki Murakami was arrested on suspicion on insider trading, Nishi added.

The arrest, which occured after the market closed on Monday, was largely expected, as Murakami himself had told a news conference earlier in the day that he was likely to be charged.

The Nikkei may move between 15,450 and 15,700 on Tuesday, Nishi said.

The share average lost 0.77 percent to 15,668.31 on Monday.

U.S. stocks tumbled on Monday, with the technology-laced Nasdaq Composite Index dropping more than 2 percent as investors worried that comments from Federal Reserve Chairman Ben Bernanke meant the U.S. was not finished with interest rate increases.

STOCKS TO WATCH -- Pioneer Corp.

The consumer electronics firm is mulling the construction of new production facilities for plasma display panels, the Asahi newspaper reported on Tuesday.

Reuters SK VP0515