Share prices closed fractionally higher, erasing losses in morning trading, after the government reported that industrial output rose for the sixth straight month although growth was slower than what the market had forecast, dealers said. Sentiment was also largely upbeat with offshore investors returning to the market, they said. The government said industrial output rose a seasonally adjusted 0.3 pct in January from the previous month, slightly below the market consensus estimate of 0.5 pct. Looking ahead, the government forecast that production will increase by 0.5 pct month-on-month in February but will fall by 0.7 pct in March. The Nikkei 225 Stock Average closed up 12.48 points or 0.08 pct at 16,205.43, after touching a high of 16,229.68. The broader TOPIX index of all first-section issues gained 3.60 points or 0.22 pct to 1,660.42, off its peak for the day of 1,664.07. However, losers outpaced gainers 927 to 675, with 71 issues unchanged. Volume was 2.27 bln shares compared to 2.22 bln shares yesterday. "Investors were expecting a little bit brighter industrial output data than the one released as the market consensus had been set at a rather low level compared with the previous months," said Ryuta Otsuka, a strategist at Toyo Securities. But he said some investors opted to chase bargains, with many taking their cue from overseas investors who were net buyers for a third consecutive day today. "After all, there is no reason to sell" with the Nikkei 225 index at the current 16,000 levels, he said. After recent losses due to a firmer yen, carmakers advanced with Toyota edging up 10 yen to 6,250, Mazda jumping 16 yen or 2.5 pct to 666 and Fuji Heavy Industries adding 7 yen to 630.