TOKYO (Kyodo) — The yen hit a three-month low in the upper 153 range against the US dollar on Monday on yen selling fueled by Japan’s political uncertainty after the ruling coalition failed to secure a majority in the general election.

Tokyo stocks ended sharply higher, with the Nikkei index at one point surging over 2 percent, on firm high-tech shares, while the yen’s depreciation led investors to seek exporter issues.

At 3 pm, the dollar fetched 153.54-55 yen compared with 152.27-37 yen in New York and 151.94-96 yen in Tokyo at 5 pm Friday.

The euro was quoted at $1.0787-0788 and 165.62-65 yen against $1.0791-0801 and 164.30-40 yen in New York and $1.0823-0825 and 164.45-49 yen in Tokyo late Friday afternoon.

The yen maintained its weakness against the dollar after the ruling Liberal Democratic Party and its coalition partner the Komeito party failed to retain a majority in the powerful House of Representatives in Sunday’s election.

The outcome dealt a heavy blow to Prime Minister Shigeru Ishiba who must now look for additional support outside the coalition to run a stable government.

“The results have created a lot of political uncertainty, with the Bank of Japan unlikely to be positive about raising interest rates in this climate,” enabling the rate differential between the United States and Japan to widen further, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

The Japanese currency was additionally pressured by concerns over who may succeed Ishiba in the event that he resigns, alongside a scenario in which a lawmaker besides the current prime minister is chosen as Japan’s next leader in parliament next month.

On the stock market, the Nikkei index briefly gained over 800 points, as a wide range of issues were sought. Gainers were led by exporters as the yen’s depreciation boosts their overseas profits when repatriated.

The benchmark was also lifted by heavyweight high-tech shares that tracked a climb on the technology-heavy Nasdaq index and a key US semiconductor index late last week.

The 225-issue Nikkei Stock Average ended up 691.61 points, or 1.82 percent, from Friday at 38,605.53. The broader Topix index finished 39.46 points, or 1.51 percent, higher at 2,657.78.

On the top-tier Prime Market, gainers were led by transportation equipment, pharmaceutical and marine transportation issues.

Stocks were additionally buoyed by some domestic earnings reports released Friday that exceeded expectations, while some market participants sought bargains after the Nikkei benchmark lost over 1,000 points the past week, analysts said.

Bucking the upward trend, Olympus plunged 160 yen, or 5.6 percent, to 2,678 yen after the optical equipment maker said its CEO Stefan Kaufmann had ruled from his post following allegations that he had purchased illegal drugs.