Nikkei likely to rise on Wall Street but gains limited

TOKYO (Reuters) - Japan's Nikkei average is likely to gain on Wednesday, with banks such as Mitsubishi UFJ Financial Group (8306.T) rising on upbeat news from Europe, while investors are seen buying exporters on a weaker yen.

U.S. stocks climbed on Tuesday, driving the S&P 500 to its best month since October 2002, as investors snapped up technology stocks, while bank shares climbed after British bank Barclays (BARC.L) declined to take part in a government asset-protection plan. .N

"The rise on Wall Street is likely to prompt market players to buy back shares that were sold yesterday," said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC. "But gains may be limited as investors don't have bullish views on the economy."

The Bank of Japan's tankan quarterly corporate survey, due before the market opens, is expected to underscore that the Japanese economy is in its worst recession since World War Two.

But the tankan is not expected to have a big impact on share prices as investors are expecting dismal figures, traders said.

Nikkei futures traded in Chicago closed at 8,365 on Tuesday, 245 points above the Osaka close, pointing to a higher opening.

Market players expect the benchmark Nikkei .N225 to move between 8,200 and 8,500 on Wednesday. It dropped 1.5 percent on Tuesday to 8,109.53.