TOKYO (AP) _ Tokyo share prices rallied today for a second consecutive day as traders welcomed a government plan to address massive bad loans held by Japanese financial institutions. The dollar was mixed against the yen.

Finance Minister Masayoshi Takemura told a news conference that the ministry will compile a comprehensive package to cope with the non-performing loans.

In an emergency economic package announced in April, the government said it would settle the bad-loan problem within five years.

Japan's 11 leading commercial banks held a total of $222.3 billion in bad loans as of the end of March, 2.3 times the combined amount they have announced publicly, the national Asahi newspaper reported Wednesday.

In addition to loans to bankrupt borrowers or those on which interest has not been paid for at least six months, the bad debts include loans on which banks have been forced to lower interest rates because of the borrowers' inability to pay, the report said.

Under those conditions, many Japanese banks remain reluctant to make new loans to businesses, dragging down the pace of Japan's economic recovery.

Katsuhiko Kodama, deputy manager of the equity department with Toyo Securities, said the ministry's plan boosted expectations among investors.

``The question is whether the upcoming package will actually fulfill those expectations,'' he said.

Takemura did not say when the ministry will announce the new package.

The 225-issue Nikkei Stock Average rose 254.56 points, or 1.63 percent, closing the week at 15,849.13. On Thursday, the average had gained 157.78 points, or 1.02 percent.

The Tokyo Stock Price Index of all issues listed on the first section rose 17.39 points, or 1.38 percent, to 1,277.99. The TOPIX rose 6.49 points, or 5.2 percent, the day before.

An estimated 270 million shares changed hands on the first section, up from Thursday's 256 million shares. Advancing issues outnumbered decliners 843 to 182, with 134 issues unchanged.

Meanwhile, the dollar remained in a narrow range in Tokyo as traders awaited the release of U.S. employment figures for May, due out later today. If the May employment report shows an economic slowdown, it is expected to be a negative factor for the dollar.

Recent U.S. economic data has indicated that the American economy is slowing at a faster pace than money traders had anticipated, and the employment report is considered an important indicator of whether the Federal Reserve Board will cut interest rates when its policy-making committee meets in July.

In late trading in Tokyo, the dollar was changing hands at 84.84 yen, down 0.34 yen from late Thursday but above its level in late New York overnight of 84.82 yen. The dollar ranged between 84.55 yen and 85.10 yen during the day.

The price of the benchmark No. 174 10-year Japanese government bonds closed at 112.41 yen, down 0.79 yen from Thursday. Their yield rose to 2.900 percent from 2.805 percent.