The main index on the Istanbul stock exchange, the BIST, was up 5.4 percent at 83,735 points shortly after the opening on Monday, following the AK Party's election victory.

Sunday's election saw the AK Party win back its overall majority in the Turkish parliament, paving the way for one-party rule once again after months of instability following an inconclusive vote in June.

The AK Party won almost half the vote, giving it around 315 seats in parliament, and is now set to rule Turkey until 2019.

"The Turkish lira could now see one of its strongest periods, moving closer to two per dollar down from three," wrote trader Steve Walker in a note published by the Anadolu Agency.

"This election will end Turkey's period of transition, and should lead to a marked strengthening of the country's economy." she added.