This file photo shows the Tokyo Stock Exchange. (Mainichi)

       TOKYO (Kyodo) -- Tokyo stocks surged Monday after the Japanese ruling coalition's win in Sunday's general election, with the Nikkei index ending at a one-month high, as investors welcomed political stability and an expected implementation of economic stimulus.

       The 225-issue Nikkei Stock Average jumped 754.39 points, or 2.61 percent, from Friday to 29,647.08, its highest close since Sept. 28. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 43.54 points, or 2.18 percent, higher at 2,044.72.

       Gainers were led by precision instrument, machinery and electric appliance issues.

       Although the LDP lost some seats from prior to Sunday's House of Representatives election, it effectively controls all standing committees and can steer the legislative process.

       "With political uncertainty fading, market players bought back issues that have good earnings prospects," said Chihiro Ota, assistant general manager of investment research at SMBC Nikko Securities Inc.

       Some investors had been concerned that Prime Minister Fumio Kishida's government would be short-lived following some media polls before the election showing the ruling party would struggle to gain a majority.

       In the currency market, the U.S. dollar rose slightly in the lower 114 yen range as investors sold the yen, seen as a safe-haven asset, after Tokyo stocks advanced on the victory of the LDP and its junior partner Komeito, dealers said.

       Stock market investors are shifting their focus to the U.S. Federal Reserve's two-day meeting through Wednesday and more corporate earnings results to come.

       "The Nikkei will resume its upward trend toward 32,000 points through the end of the year if upcoming events end without any major problem," said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.

       On the First Section, advancing issues outnumbered decliners 1,901 to 243, while 40 ended unchanged.

       Companies revising their profit forecast upward in recent earnings reports gained ground with Japan Tobacco climbing 143.0 yen, or 6.4 percent, to 2,378.5 yen and machine tool equipment maker Okuma advancing 240 yen, or 4.4 percent, to 5,660 yen.

       Precision instrument and machinery issues were bought, with Olympus gaining 95.0 yen, or 3.9 percent, to 2,555.5 yen, and Hitachi Construction Machinery rising 125 yen, or 3.4 percent, to 3,750 yen.

       Trading volume on the main section fell to 1,285.90 million shares from Friday's 1,564.98 million shares.

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