Stock index futures point to lower open

At 4:39 a.m. EDT, futures for the S&P 500 were down 0.28 percent, Dow Jones futures were down 0.17 percent and Nasdaq 100 futures were down 0.22 percent.

Japan's Nikkei stock average dropped 2.4 percent on Monday to hit its lowest close since May 1, with Panasonic <6752.T> tumbling 7.6 percent after it forecast a bigger-than-expected annual loss following a record quarter of red ink, battered by weak demand, price falls and restructuring costs.

European stocks were down around 0.8 percent in early trade in a broad retreat led by miners such as Rio Tinto and BHP Billiton .

Japanese manufacturing sentiment edged up from record lows this month, keeping alive hopes that a disastrous first quarter marked a low point in Japan's and the world economy's worst recession since World War Two.

Monday's monthly Reuters survey of Japan's top companies follows last week's better-than-expected machinery orders data for April and a U.S. consumer survey showing confidence at its highest since last September's collapse of Lehman Brothers.

AIG is to speed up plans to list its Asian subsidiary through an IPO that could raise more than $4 billion, as the bailed-out U.S. insurer seeks to raise cash to pay back government loans.

Both macro and corporate diaries were thin on Monday, with Lowe's the only major company due to report results. On the data front, investors will keep an eye on the U.S. NAHB housing market index, due at 1:00 p.m. EDT.

U.S. stocks lost ground on Friday as energy stocks fell along with crude oil prices on concerns over weak demand, offsetting fresh reassuring economic data.

The Dow Jones industrial average declined 62.68 points, or 0.75 percent, to 8,268.64. The Standard & Poor's 500 Index dropped 10.19 points, or 1.14 percent, to 882.88. The Nasdaq Composite Index eased 9.07 points, or 0.54 percent, to 1,680.14. The Nasdaq fell 3.4 percent for the week, breaking a nine-week winning streak. The S&P 500 lost 5 percent and the Dow shed 3.6 percent.

Since reaching a floor in early March, the Dow has gained 27.8 percent and the S&P 500 is up 32.4 percent.

(Reporting by Blaise Robinson; Editing by Erica Billingham)