Tokyo stocks seen topping 17,000, techs eyed

TOKYO, Mar 30 (Reuters) Japanese stocks are expected to top 17,000 for the first time in 5-{ years on Thursday, with shares in firms such as Sony Corp. rising after U.S. technology stocks rose to five-year highs.

Isuzu Motors Ltd. may be a focus after the Nihon Keizai business daily said General Motors Corp. plans to sell most of its 7.9 percent stake in the truck maker.

Shares in firms linked more closely to the fortunes of the domestic economy, such as banks and brokerages, may also be in focus, due to the perception that they are underpriced compared to their high-tech counterparts.

''The Nikkei will certainly hit 17,000 today,'' said Masayoshi Okamoto, head of dealing at Jujiya Securities.

''Techs will likely see buying ... however there is also some concern that some techs may be overpriced after yesterday's sharp gains, so domestic-demand firms may end up the main focus.'' Traders expect the Nikkei share average to move between 16,850 and 17,100 on Thursday.

It posted its highest close since August 2000 on Wednesday, rising 1.49 percent to 16,938.41 as the yen's fall against the dollar fuelled expectations of higher earnings at exporters.

In Chicago, Nikkei futures expiring in June closed at 17,060, a gain of 150 points from the Osaka finish.

Isuzu said it was checking the report, while GM declined to comment. Trading firm Mitsubishi Corp. said separately it is considering a request from GM to buy some of the U.S. auto maker's stake.

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.

The Tokyo stock exchange has shortened overall afternoon trading by 30 minutes to avoid computer system problems. Trade will begin at 1 p.m. (0400 GMT) instead of the usual 12:30 p.m. and will finish at 3 p.m.

STOCKS TO WATCH -- All Nippon Airways Co.

Japan's second-biggest airline said it would likely beat its net profit forecast for the year ending this month by 35 percent, deepening the contrast with larger rival Japan Airlines, which has projected a loss.

-- Japan Airlines Corp. T> Underscoring JAL's recent weak performance, Eitaro Itoyama, a former parliament member who held a 4 percent stake in JAL said on his Web site on Wednesday that he had sold half of his holdings in the market.

-- Mitsubishi Motors Corp.

Moody's Investors Service lifted its Ba3 rating outlook on the auto maker on Wednesday, offering a dash of positive news even at a time when Mitsubishi faces a capacity glut in Europe and plunging sales in the crucial U.S. market.

-- Tokyo Broadcasting System Inc.

The TV and radio broadcaster said it would likely fall short of its net profit projection for 2005/06 by 21.5 percent, hurt by stock-valuation losses on a subsidiary.

-- Nippon Mining Holdings Inc.

The copper smelting and oil refining group said it would likely beat its 2005/06 net profit forecast by 8.1 percent, helped by high metal and oil product prices.

REUTERS SK RN0526