ISTANBUL: Turkish assets rallied on Monday, with the lira on track for its biggest one-day gain in seven years and stocks up nearly 6 percent after an election that returned the country to single-party rule, ending months of uncertainty for investors.

The AK Party, founded by President Tayyip Erdogan, won just short of 50 percent of Sunday's national vote, giving it a clear majority of around 317 seats in the 550-seat Parliament and a far higher margin of victory than even party insiders had expected. But by 1330 GMT the currency was heading for its biggest one-day gain since November 2008, up nearly 4 percent against the dollar at 2.8010.

The BIST 100 share index, the broadest measure of stock performance, surged nearly 6 percent, its highest level since July and its biggest one-day jump in two years.