Pakistan shares up on resignation

Markets had been knocked by the political uncertainty

Pakistan's leading share index has gained more than 4% after President Pervez Musharraf said he would resign.

The move was welcomed by investors, who said it would help to dispel the political uncertainty that has dented markets recently.

The Karachi Stock Exchange benchmark 100-share index climbed by 4.47%.

Political turmoil had pushed the rupee to a record low against the dollar before the weekend, as fears grew that Mr Musharraf would be impeached.

Mr Musharraf faces charges of violating the constitution and gross misconduct.

He said he was confident that the charges against him would not stand.

The economic situation in Pakistan has deteriorated in recent weeks, with inflation reaching its highest in 30 years, the trade deficit widening and reserves falling.