Nikkei tops 17,000 for first time in 5 years

TOKYO, Mar 30 (Reuters) The Nikkei average topped 17,000 for the first time in more than 5-{ years on Thursday, gaining 0.56 percent as shares in Sony Corp. and other technology firms were boosted by advances in similar U.S. stocks.

Shares in Isuzu Motors Ltd. rose amid signs that General Motors Corp. plans to sell most of its stake in the Japanese truck maker, boosting optimism that Isuzu would be able to cut its ties with the struggling U.S. auto maker.

Gains by U.S. tech stocks and confidence in earnings growth were pushing investors towards Japanese technology issues, said Tsutomu Yamada, market strategist at kabu.com Securities Co.

''Right now tech firms including Sony and chip-equipment makers are an easy buy.'' ''They will start reporting their earnings at the the end of April, and until then I think they will be the dominant theme in the market.'' The Nikkei was up 94.09 points at 17,032.50 as of 0051 GMT, after earlier hitting 17,064.15, its highest since August 2000.

The TOPIX index was up 0.69 percent at 1,723.39.

Sony rose 1.9 percent to 5,470 yen.

Electronics components maker Kyocera Corp. added 1 percent to 10,450 yen.

These gains came after U.S. stocks staged a broad rebound on Wednesday as tech shares rallied on optimism about economic growth, driving the Nasdaq Composite Index to a five-year high.

Isuzu rose 2.8 percent to 438 yen after the Nihon Keizai Shimbun reported that General Motors plans to sell most of its 7.9 percent stake in the truck maker.

Mitsubishi Corp. and Itochu Corp. both said on Thursday that they had received requests to buy GM's shares in Isuzu, and an Isuzu spokesman said the company would issue a statement on the matter later in the day.

The news has generated optimism that Isuzu would be better off after cutting its ties with the struggling auto maker, said Ken Masuda, senior dealer in equities at Shinko Securities.

''You have to think of this as a plus ... General Motors is not doing well at the moment,'' he said.

REUTERS SK RN0650