Nikkei up but GM jitters block further gains

* Nikkei gains on U.S. consumer confidence, exporters rise

* Benchmark breaks above 200-day moving average

* Further gains blocked by fears of GM bankruptcy

By Elaine Lies

TOKYO, May 27 (Reuters) - Japan's Nikkei average rose 1.4 percent to its highest close in two weeks on Wednesday, with exporters and high-tech firms strong after U.S. consumer confidence surged, but gains were capped by fears that the bankruptcy of General Motors (GM.N) is drawing near. Among gainers were consumer electronics maker Panasonic (6752.T) and Toyota Motor Corp (7203.T), both badly hurt by the slump in U.S. demand for Japanese goods, while chip stocks also jumped on a climb in a key U.S. index.

The benchmark Nikkei .N225 broke and held above resistance near 9,400 posed by its 200-day moving average but lacked the energy to crack 9,503.91, the year's high, in the face of growing nervousness about the fate of GM.

The largest U.S. automaker has failed to persuade enough bondholders to accept a debt-for-equity swap, setting the stage for the largest-ever U.S. industrial bankruptcy within days. [ID:nN26485137]

"An expected bankruptcy has largely been factored in but nobody can say for sure, so investors are unwilling to buy the market higher until they see what happens and how Wall Street responds," said Yumi Nishimura, deputy general manager of the investment advisory section at Daiwa Securities SMBC.

Jitters about GM weighed despite a spate of hopeful signs, including the fact that the Nikkei's 14-day moving average is closing in on the 200-day moving average for a potentially bullish Golden Cross, in the past usually a strong buying signal.

A similar signal can be seen on weekly charts, where the 13-week moving average broke above the 26-week moving average in another Golden Cross earlier this month, said Masayuki Kubota, a senior fund manager at Daiwa SB Investments.

Additional pressure is coming from long-term worries about North Korea amid growing geopolitical tensions following the North's nuclear test and missile launches earlier this week.

"So far the market has shrugged off the North Korean actions, but when you think over the longer term, it's quite a cause for concern," said Takashi Ushio, head of the investment strategy division at Marusan Securities.

The benchmark Nikkei gained 127.96 points to close at 9,438.77 after having risen as far as 9,491.13 in early afternoon, while the broader Topix .TOPX rose 1 percent to 892.85.

But trade was confined to a range of only 80 points.

Some analysts said fresh factors were needed for a sustained break above 9,500, with Friday's industrial production figures awaited for fresh hints of an economic recovery.

MARKET SHRUGS OFF EXPORT FALL

The Conference Board, a U.S. industry group, said on Tuesday its index of consumer attitudes jumped to 54.9 in May from a revised 40.8 in April, well above forecasts centred around 42.0, helping push U.S. stocks more than 2 percent higher. [.N] [ID:nN26489555]

This helped the market weather data released on Wednesday showing Japan's exports fell 39.1 percent in April from a year earlier, though at a slower pace than in March or forecast by economists. [JPEXPY=ECI]

Panasonic rose 1.7 percent to 1,347 yen and Toyota advanced 2.8 percent to 3,700 yen.

Chip and chip equipment stocks were among the biggest Nikkei 225 percentage gainers after the Philadelphia Semiconductor Index .SOXX climbed 3.7 percent.

Advantest Corp (6857.T) surged 4.3 percent to 1,690 yen, Tokyo Electron (8035.T) jumped 3.3 percent to 4,370 yen and Nikon (7731.T) rose 3.5 percent to 1,396 yen.

Sanyo Electric Co 6764.T gained 7 percent to 229 yen, its highest close since Nov. 5, after media reported that automakers will increase output of gas-electric hybrid vehicles, which is expected to boost demand for the lithium-ion batteries Sanyo produces.

But smelters and related firms bucked the trend as investors moved to lock in profits after several days of gains. Nippon Mining Holdings 5016.T lost 4 percent to 525 yen, Dowa Holdings (5714.T) fell 2.8 percent to 412 yen and Mitsui Mining and Smelting (5706.T) slid 3.9 percent to 223 yen.

Trade was steady, with 2.1 billion shares changing hands on the Tokyo exchange's first section, the same as last week's daily average.

Advancing shares outnumbered declining ones by 814 to 719. (Reporting by Elaine Lies; Editing by Joseph Radford)