FINANCIAL MARKETS : Election, Uno Decision Push Tokyo Stocks to New High

Tokyo stock prices soared to a record close for the first time in eight weeks Tuesday as market jitters were exorcised by Sunday’s election loss for the ruling party and Prime Minister Sosuke Uno’s decision to resign.

The key 225-share Nikkei index soared 445.57, or 1.31%, to a record close of 34,538.90 after hitting an intra-day high of 34,542.51 just before trading ended.

The index rose 193.90 Monday after Uno’s statement. Its previous closing peak of 34,266.75 has been unchallenged since May 31.

“Sunday’s election was a catharsis for the market, and it’s been up and running ever since,” said Paul Migliorato, equity salesman for Jardine Fleming Securities.

The ruling Liberal Democratic Party lost its majority in parliament’s upper house for the first time in 34 years Sunday, and the next day Uno announced his plan to resign.

Investors had been nervous over the outcome of the elections and the fate of scandal-scarred Uno, but events on Sunday and Monday erased their uncertainties.

On the London Stock Exchange, stocks closed higher, reflecting takeover speculation and Wall Street’s strong opening. The Financial Times 100-share index ended up 10.3 at 2,269.4.