Japan stocks seen rising but gains likely capped

TOKYO, Aug 21 (Reuters) Japanese share prices are seen rising on Monday, with buying prompted by a fifth straight gain in U.S. stocks helping to boost sentiment in the Tokyo market.

Broader gains may be limited, however, due to a lack of factors in the domestic market and because of concerns Tokyo stocks have advanced too quickly during their recent upswing.

''In the morning we are likely to start off stronger,'' said Yutaka Miura, deputy manager of equity information at Shinko Securities, citing gains in the U.S. market.

''Right now there are few factors to move the market and there are concerns about overheating after the recent advances .... There is a chance the market could move sideways in the afternoon.'' Nikkei futures pointed to a slight decline in the market, with September futures traded in Chicago closing at 16,125, down 25 points from the Osaka finish.

The Nikkei is expected to move between 16,000 and 16,200 on Monday, market participants said.

It rose 0.53 percent to 16,105.98 on Friday.

U.S. stocks closed higher for the fifth day in a row on Friday, with the Nasdaq composite index posting its best week in three years.

STOCKS TO WATCH -- Futata Co.

The retailer of menswear on Friday opted to be taken over by its biggest shareholder Konaka Co., ditching a 4 million bid from larger peer Aoki Holdings Inc.

-- Rakuten Inc.

Japan's biggest online shopping mall said on Friday its second-quarter operating profit rose 34.4 percent from a year earlier on the back of strong electronic commerce and financial services.

-- Tokyo Electron Ltd. and other chip-related firms Orders for Japanese equipment used to make microchips far outpaced sales in July in a sign of strong microchip demand ahead although they were down on the previous month, an industry group said on Friday.

-- Kawasaki Heavy Industries Ltd The company is considering building a second plant to make components for Boeing Co.'s 787 Dreamliner, the Nihon Keizai business daily reported on Saturday.

REUTERS SK PM0525