Ueda's remarks fuel rally in Tokyo stocks on Friday

Comments by Bank of Japan governor nominee Ueda Kazuo fueled a rally on the Tokyo Stock Exchange on Friday.

The Nikkei Average ended the day at 27,453, up 349 points, or almost 1.3 percent, from Wednesday's close. Thursday was a national holiday in Japan.

Analysts say investors bought shares in a wide range of sectors on the view that the central bank will keep interest rates low by continuing its monetary easing program.

But the rise was limited, as Ueda also mentioned the side-effects of the ultra-loose policy. Investors speculated that the BOJ's new leadership could tighten in response to such effects.

Friday's gains offset Wednesday's losses on concerns that inflation in the US may remain high, and that rate hikes could be prolonged.