Tokyo stocks seen lower as market takes a breather

TOKYO, May 24 (Reuters) Tokyo stocks are seen moving lower on Thursday with recent gainers such as Mizuho Financial Group Inc.

expected to fall as the market corrects after a three-day climb and following a decline in U.S. markets.

Investors are likely to focus on Japan Airlines Corp. (JAL) after the Nikkei business daily reported the company is asking its main lenders to boost its capital by 200-400 billion yen (.7 billion-.3 billion) to help it restructure without further damage to its financial standing.

''The market is likely to take a breather after rising three sessions in a row and also following a fall in U.S. stocks,'' said Hiroichi Nishi, a general manager of equity marketing at Nikko Cordial Securities.

U.S. stocks edged lower on Wednesday as a warning about Chinese stocks from former Federal Reserve Chairman Alan Greenspan erased gains fueled by takeover talk in the aluminium sector.

Nikkei futures pointed to a slight decline in stock prices.

Contracts expiring in June closed at 17,710 in Chicago on Wednesday, down 20 points from the close in Osaka.

The Nikkei is likely to move between 17,600 and 17,800 on Thursday, Nishi said.

The benchmark rose 0.14 percent on Wednesday to close at 17,705.12.

The Dow Jones industrial average fell 0.11 percent to end at 13,525.65.

STOCKS TO WATCH -- Tenryu Saw Manufacturing Co. Ltd.

U.S. hedge fund Steel Partners said on Wednesday it would launch a tender offer for all the shares of Japanese circular saw maker Tenryu Saw Manufacturing it does not already own.

-- Mitsubishi UFJ Financial Group Mitsubishi UFJ Financial Group reported a 25.5 percent drop in annual profit on Wednesday, hurt by weakness in its core lending business, and said earnings would likely decline further this year.

-- Softbank Corp.

Softbank said on Wednesday it had scrapped its plan to sue a brokerage over an analyst's report that criticised its accounting practices.

-- KK DaVinci Advisors Real estate investment firm KK DaVinci said on Wednesday it had filed a request to the Tokyo local court to force its bid target TOC Co. to hand over a list of its shareholders.

-- Nippon Mining Holdings Inc.

Nippon Mining, the world's second-biggest copper smelter, said it aims to boost purchases of copper from its own mines to 50 percent within five to 10 years, up from the current 16 percent.

REUTERS SZ PM0540