Tokyo stocks rebounded Friday, with the benchmark Nikkei stock index gaining 1.36 percent to a one- week closing high following successful bond auctions in Spain and Italy, easing concerns about the debt crisis in Europe's single currency zone.

Strategists here said that investors took heart at news that key bond auctions in Spain and Italy went smoothly and were optimistic that the European Central Bank was doing more to contain the spread of debt in the eurozone.

ECB chief Mario Draghi said that refinancing operations that the central bank has recently rolled out were aiding the funding situation of banks in the region and providing further market confidence that facilities to combat the debt crisis were being proactively and effectively utilized.

The ECB opted to hold its benchmark rate at 1.0 percent while it took time to fully assess the outcome of its non-standard policy measures, but analysts here said that while appetite returned for Japanese issues following two-straight days of losses, the fundamental problems in the eurozone remained unchanged and would continue to weigh on global markets in the foreseeable future.

"The market is temporarily rebounding but the fundamental problems in the eurozone still remain. Nobody knows how long the euro will continue to climb against the yen," said Yutaka Miura, a senior technical analyst at Mizuho Securities.

The 225-issue Nikkei Stock Average added 114.43 points from Thursday to end the week at 8,500.02, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 7.45 points, or 1.02 percent, to finish at 734.60.

But while exporters gained as fears temporally abated about the eurozone, with euro-linked issues like Canon climbing 3.1 percent to 3,355 yen and Nikon gaining 2.6 percent to 1,711 yen, strategists said that Japanese Prime Minister Yoshihiko Noda's reshuffling his cabinet was met with a muted reaction by the market and did little to encourage investors to chase assets higher.