Tokyo, Sept 12, SPA -- Japanese stocks surged to four-year highs and the yen gained Monday as business leaders and investorswelcomed the landslide victory by Japan's reform-mindedruling party in weekend parliamentary elections amidgrowing optimism about the nation's economic prospects. "The win was so much more convincing than expected thatthe election succeeded in sending a strong message ofreform," said Jun Yamamoto, senior economist with MizuhoResearch Institute in Tokyo. "The image is all aboutmoving ahead with reforms. And the mood is bright." Prime Minister Junichiro Koizumi's Liberal DemocraticParty won a total of 296 seats in the more powerful,480-seat lower house, public broadcaster NHK reported, wellabove the 241 seats needed for a majority and the 249 seatsit held when Koizumi dissolved the chamber last month. Investors were cheered by the strong support for Koizumiin an election widely seen as a referendum on his reformsfor a more market-friendly, efficient economy and a smallergovernment. The Nikkei 225 index gained 1.6 percent to finish at12,896.43 points, the highest since June 2001, according to a report of The Associated Press.--SPA1249 Local Time 0949 GMT www.spa.gov.sa/289036