TOKYO, Feb. 24 (Xinhua) -- Japan's benchmark Nikkei stock index bounced back Friday as chip-linked issues rallied and Bank of Japan (BOJ) governor nominee Kazuo Ueda pledged to continue with the bank's powerful monetary easing policy.

The 225-issue Nikkei Stock Average added 349.16 points, or 1.29 percent, from Wednesday to close the day at 27,453.48.

The broader Topix index, meanwhile, gained 13.15 points, or 0.67 percent, to finish at 1,988.40.

Dealers here said that the market mood was lifted as Ueda's testimony in the lower house of parliament was in line with the market's expectations for a fairly dovish and nondescript stance regarding the future course of the BOJ's monetary policy.

"I believe it's appropriate for the BOJ to continue with the current monetary easing, in view of the current economic activity and prices and future prospects," Ueda said in parliament.

He noted that inflation in Japan is rising at a rate of around 4 percent, in line with data the government released Friday, showing that Japan's core consumer prices rose 4.2 percent in January from a year earlier, at a pace not seen since September 1981, owing to rising energy and food prices.

The latest rise in core consumer prices follows a 4.0 jump logged in December, with January's reading marking the 10th straight month the index has remained above the central bank's 2-percent inflation target.

Along with saying uncertainty surrounded Japan's and the global economy, Ueda said that inflation is predominantly "cost-push" and rather than being a result of strong demand is down to rising import prices.

He said that the cost-push factors are temporary and would eventually give way, with inflation here dropping below the 2-percent mark later this year.

"He's dovish, as expected -- or at least he's not saying anything specific about a policy change. I think he's intentionally doing that so that the market will calm down a little bit about policy change expectations," Naka Matsuzawa, a strategist at Nomura Securities, was quoted as saying.

In terms of market-moving stocks, U.S. semiconductor maker Nvidia forecasting better-than-expected quarterly sales gave its Japanese peers a boost, with chip-testing equipment maker Advantest leaping 8.2 percent, while chip-manufacturing equipment maker Tokyo Electron jumped 7.1 percent.

By the close of play, marine transportation, electric appliance and machinery-linked shares comprised those that gained the most.

The turnover on the final trading day of the week came to 3,033.99 billion yen (22.45 billion U.S. dollars).

Markets here were closed on Thursday for a national holiday. Enditem

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