US STOCKS-Bank of Japan move lifts futures ahead of ISM data

* Bank of Japan to pump more funds into economy

* Oil futures, gold rise

* ISM services index on tap

* Futures up: Dow 18 pts, S&P 2.7 pts, Nasdaq 6.5 pts

* For up-to-the-minute market news see [STXNEWS/US] (Adds quote)

By Ryan Vlastelica

NEW YORK, Oct 5 (Reuters) - U.S. stock index futures rose on Tuesday as global stimulative measures reassured investors that governments were taking protective steps against economic weakness.

The Bank of Japan will pump more funds into the struggling economy and keep rates close to zero, while Australia's central bank also kept rates low, in moves that surprised investors. The Nikkei jumped 1.5 percent on the fresh dose of stimulus, leading the way for U.S. market gains. For details, see [ID:nTOE69305D] and [ID:nSGE69401B]

"We're in a slow and uneven recovery, and it's good to know that governments are going to use their bullets to help prevent a double-dip recession," said Cort Gwon, director of trading strategies and research at FBN Securities in New York.

In a sign of continued struggles for Europe, Moody's may cut Ireland's credit rating again, pointing to the huge bill for cleaning up its banks, a weak recovery and rising borrowing costs. [ID:nLDE6940AV]

"I expect the Bank of England to do a similar move as the Bank of Japan, sooner rather than later, and that will have another positive impact on us in the near term," Gwon said.

U.S. Federal Reserve Chairman Ben Bernanke said the Fed's asset purchases lowered borrowing costs and helped the economy, and that more buying could further ease conditions. The Fed bought $1.7 trillion in mortgage-related and Treasury bonds after cutting benchmark rates to near zero to combat the financial crisis and help the economy pull out of a severe recession. [ID:nN04133934]

S&P 500 futures rose 2.7 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 18 points and Nasdaq 100 futures rose 6.5 points.

Investors looked ahead to September's Institute for Supply Management's non-manufacturing index, which is expected to be largely unchanged from the prior month but still in expansionary territory. The business activity expectation is 54.0, compared with 54.4 last month. The PMI figure is seen at 52.0, up from 51.5 last month. Anything above 50 represents expansion.

The services sector makes up the bulk of the economy, and traders hope for signs of strength a week after the ISM's manufacturing index showed the sector slowed in September. [ID:nN01241612]

Oil futures rose 0.5 percent and neared its highest price since Aug. 6 after Japan lowered rates, which weakened the dollar. Gold hit a record high above $1,326 an ounce. [ID:nSGE69405N]

Fast food chain operator Yum Brands Inc is on tap to report third-quarter results. The earnings season unofficially kicks off later this week with Alcoa Inc's results after the market close on Thursday.

Chevron Corp plans to resume quarterly stock buybacks of up to $1 billion as the No. 2 U.S. oil group gains confidence about its finances. Shares of the Dow component rose 0.9 percent to $82.08 in light premarket trading. [ID:nN04137239]

U.S. stocks fell Monday as investors used mixed economic data and worries about euro zone debt as a catalyst to shed long positions. (Editing by Jeffrey Benkoe)