Tokyo stocks seen rising after U.S. stocks recover

TOKYO, Aug 3 (Reuters) Japanese shares are expected to open higher on Thursday as gains in U.S. stocks help shares of exporters, such as Sony Corp., which have come under pressure due to chances of a U.S. interest rate rise.

But whether the Federal Reserve raises rates for the 18th consecutive time since June 2004 will not be known until its policy-setting committee meets on Tuesday, curbing aggressive buying.

The United States is a key market for Japanese products, and its monetary policy affects domestic consumer spending and influences global investors' decisions.

Shinji Igarashi, equity manager at Chuo Securities, said the benchmark Nikkei average is likely to break through this week's intraday high of 15,536 following gains in U.S. stocks.

''The Nikkei is set to clear the recent high (marked on Monday) and will get its target of a July high of 15,710 in sight,'' he said.

Behind the improving sentiment lie good quarterly earnings, a drop in long positions in margin trading and a recovery in small-cap stocks, he said.

Chicago-traded Nikkei futures contracts also suggest the market could rise. Nikkei September futures closed at 15,580, 90 points above the Osaka finish.

Tokyo's Nikkei is expected to move between 15,450 and 15,650 on Thursday, market participants said.

It rose 0.15 percent to 15,464.29 on Wednesday after falling 0.1 percent the previous day.

Major companies to announce earnings later in the day include Mitsui O.S.K. Lines Ltd., Mitsubishi Estate Co. Ltd., Konica Minolta Holdings Inc. and Nippon Telegraph and Telephone Corp.

U.S. stocks bounced back on Wednesday after Procter&Gamble Co. beat earnings expectations, improving perceptions of consumer sentiment.

Software maker Adobe Systems Inc. affirmed its profit forecast, boosting the lagging tech sector and helping send the tech-laden Nasdaq Composite Index up 0.82 percent.

STOCKS TO WACH -- Hokuetsu Paper Mills Ltd.

The paper manufacturer said on Wednesday it will oppose a hostile takeover bid by larger rival Oji Paper Co. and study the possibility of issuing equity warrants to impede it.

-- Canon Inc.

The world's largest maker of digital cameras unveiled a digital video camera for home users on Wednesday that can record high-definition movies, matching a product offered by rival Sony Corp.

-- Mitsubishi UFJ Financial Group Inc. The world's biggest bank by assets may miss its annual core profit forecast due to narrower-than-expected growth in lending spreads, its president told Reuters in an interview on Wednesday. -- Elpida Memory Inc.

Chief Executive Yukio Sakamoto said in an interview the company could spend up to 1 trillion yen to build a new DRAM plant, possibly teaming up with either Taiwan's Powerchip Semiconductor Corp. or China's SMIC REUTERS VJ RK506