Bank of Japan board member Yoshihisa Morimoto on Thursday warned of looming uncertainties over the global economy including an outflow of funds from emerging nations, driven by expectations that the U.S. Federal Reserve will soon taper its bond-buying program.

Morimoto also called on the government to keep up efforts to fix Japan's worsening finances, saying that Japan must maintain market trust in its finances in order for the BOJ's monetary easing to be fully effective.

"Market participants are withdrawing funds from emerging and resource-rich nations on expectations (of Fed's tapering) and may continue to do so. The global economic recovery remains fragile, so there is much uncertainty on how a sharp outflow of funds could affect financial markets and global growth," Morimoto said in a speech to business leaders in Morioka, northeastern Japan.

(Reporting by Leika Kihara; Editing by Shinichi Saoshiro)