Share prices closed slightly higher with the Nikkei index rising to a new peak in over four years, supported by optimism on the Japanese economy and hopes of structural reforms, dealers said. Financial markets will be closed tomorrow for a public holiday. The Nikkei 225 Stock Average closed up 26.92 points or 0.2 pct at 13,894.78. It was the highest close for the index since May 24, 2001, when it settled at 13,895.79. The broader TOPIX index of all First Section shares rose 1.23 points or 0.1 pct to 1,474.25. But decliners led gainers 857 to 709, with 96 issues unchanged. Volume reached 3.65 bln shares, more than double the 1.80 bln shares yesterday when the trading session was shortened due to a system glitch. "Despite a fall in US stocks overnight, Japanese stocks were strong," said Hideo Mizutani, a chief strategist at Sieg Securities. Mizutani said that investor sentiment remained upbeat on view that Prime Minister Junichiro Kozumi's reform strategy will continue after the cabinet reshuffle and expectations that Japan may soon exit deflation.