Bangkok - Thai shares jumped 4.5 per cent in value Monday on a combination of good news on both the international and domestic fronts.

The Stock Exchange of Thailand (SET) index ended at 410.58, up 17.71 points or 4.17 per cent.

"Investors came back to the market because of two bits of good news," said Mongkol Phuangphaetha, an analyst at Adkinsons Securities.

"From overseas there was the news that the US was going ahead with a special budget for its ailing auto industry and domestically there was the news that the Democrats were poised to set up a new government," he said.

The Democrat Party, which has been in the opposition since 2001, over the weekend announced it had succeeded in mustering enough support from smaller parties and a breakaway faction from the former ruling party to become the core of a new coalition government.

Thailand has been under a caretaker cabinet since December 2, when the Constitution Court dissolved the People Power Party, which led the previous coalition government, for election fraud in the December 23, 2007 polls.

Many Thais hope that a new Democrat-led government would bring some normalcy to Thailand's political scene, which has been turbulent for the past three years. (dpa)