(Adds analyst comment, background) LIMA, Oct 7 (Reuters) - Peru’s currency and equities markets rose strongly on Thursday, seeming to cheer a partial cabinet reshuffle by President Pedro Castillo, who replaced his far-left prime minister with a more moderate official. The sol currency bounced around 1.3% after having marked a record low the previous day amid political uncertainty and clashes within the government in the world’s second-largest producer of copper. Castillo swore in Mirtha Vasquez, a left-leaning former head of Congress, as prime minister on Wednesday, replacing Guido Bellido, whose brash style had rattled investors and the Andean country’s opposition-led Congress. The move hinted at a shift toward the center for Castillo’s young administration, after he swept to power in late July pledging to shake up the mining sector and boost spending. His government has been a mix of moderates and more hard-left politicians allied to his Marxist-Leninist Free Peru party. J.P. Morgan said the move - along with confirmation of central bank head Julio Velarde earlier this week - would help the government build bridges with the centrist parties in Congress, avoid “extreme agendas” and lower market risk. “The political actions unveiled this week should help to mollify the multiple concerns that have weighed on local assets in the last four months,” the bank added. A selective index of Peruvian stocks rose 5%, while dollar-denominated sovereign bond prices rose across the curve, with the 2031 bond adding over 1 point to trade at 99.987 cents on the dollar, its highest since Sept 27. The 2050 bond was up nearly two cents. Bellido had threatened to nationalize natural gas resources in Peru and also call a “vote of confidence” in Congress in defense of a Cabinet ally, a move that risked creating a political crisis between lawmakers and the government. Castillo made seven changes to his Cabinet of 18 ministers in total, replacing the mining minister and under-fire labor minister, while keeping in place moderates such as Economy Minister Pedro Francke and Foreign Minister Oscar Maurtua. Reporting by Marco Aquino; Additional reporting by Rodrigo Campos and Karin Strohecker; Editing by Adam Jourdan and Dan Grebler Our Standards: The Thomson Reuters Trust Principles.