Share prices closed higher, with the blue-chip Nikkei 225 hitting its highest closing level for more than four years, after the session started late because of a problem with the trading system. The stock surge was helped by expectations about the recovery of the Japanese economy, dealers said. The Nikkei 225 Stock Average closed up 261.36 points or 1.9 pct at 13,867.86, its high of the day. It was the highest close since May 24, 2001, when it ended at 13,895.79. The broader TOPIX index of all First Section shares surged 28.29 points or 2.0 pct to 1,473.02, also ending at its high for the day. Gainers overwhelmed losers 1,211 to 355, with 97 issues unchanged. Because there was only about half a day of trading, volume dropped to 1.80 bln shares from 2.71 bln shares yesterday. The exchange was unable to trade stocks until 1.30 pm because of a technical glitch. It was the bourse's first major system failure since Aug 1, 1997. "Yesterday, the TOPIX was already strong, and investors had expected stocks would rise today. So, even during the suspension, futures were really bullish," said Hideyuki Suzuki, a strategist at SBI Securities. "Today's suspension provided evidence that the market is in a robust trend." Suzuki attributed the market's bullish tone to yesterday's cabinet reshuffle by Prime Minister Junichiro Koizumi as well as Bank of Japan's latest report on economic activity and prices. In its biannual report, central bank said it expects the economy to escape decisively from deflation by next year. It increased its forecast of economic growth for the year to March 2007 to 1.8 pct. Suzuki said these factors reassured investors that economic structural reform will progress and that economy is on the path to recovery.