(Updates at 0600 GMT)

TOKYO, July 4 (Reuters) - Japan's main stock indexes

settled at record closing highs on Thursday, led by gains in

shares of automakers, banks and technology firms, as the market

expects a robust corporate outlook in the latter half of the

year.

The broader Topix index hit a record high,

surpassing its previous peak from 34 years ago, rising to as

high as 2,900.91 earlier in the session.

The index ended 0.92% higher at 2,898.47, crossing a record

closing high scaled in December 1989.

"The Topix needed power from automakers and banks to

rise as they take up a large portion in the index's weighting,"

said Yugo Tsuboi, chief equity strategist at Daiwa Securities.

"Bank shares rose along with the expectations that interest

rates will rise and automakers were supported by a weak yen."

Toyota Motor ( TM ) rose 1.98% to provide the biggest

boost to the Topix. Honda Motor ( HMC ) jumped 3%.

Mitsubishi UFJ Financial Group ( MUFG ) climbed 1.47% and

Mizuho Financial Group ( MFG ) jumped 3.45%.

The Nikkei ended 0.82% higher at 40,913.65, crossing

a record close marked on March 22, led by technology stocks,

with chip-testing equipment maker Advantest ( ADTTF ) rising

2.14%. Technology investor SoftBank Group ( SFTBF ) gained 4.53%.

The indexes will maintain the momentum toward the end of the

year as investors expect local companies will raise their

outlook, Daiwa's Tsuboi said.

"Investors sold Japanese stocks earlier this year as

Japanese companies made conservative outlook, but with signs of

economic improvement, they expect better outlook to be issued

later in the year," Tsuboi said, adding that he maintains his

43,000 target for the Nikkei at the end of this year.

Of more than 1,600 stocks trading on the Tokyo Stock

Exchange's (TSE) prime market, 59% rose and 35% fell with 4%

trading flat.