Share prices of Tokyo Electric Power Co. (TEPCO), the utility company that operates the disaster-hit Fukushima nuclear power plant, have increased by just under 28% as of Tuesday morning. Only two days after the formal election of the Liberal Democratic Party (LDP) and leader Shinzo Abe, this is the second day in a row of the stock’s rising value, following a 33% jump on Monday. This sudden turn around is prompted by the belief that the business-friendly LDP will getting rid of any plans for Japan to end its use of nuclear power in the near future.

TEPCO’s shares were trading at 258 yen (approx. $3.08) on the Tokyo Stock Exchange early Tuesday, an increase of 27.72%. Seemingly out of nowhere, Monday saw the utility company rise in value by 32.89%, to 202 yen ($2.41). While significant, the shares are still barely what they were worth before the March 2011 disaster, more than 2,100 yen ($25). Analysts say that while TEPCO shares were too cheap to not buy, from a risk perspective, the company is still far from a “sure thing” as there is still the Fukushima clean-up to deal with, as well as ongoing and future lawsuits.

The overall jump in the utility’s share price is credited to the LDP’s two-thirds victory in Sunday’s general election. While much of Japan remains strongly opposed to nuclear power, the LDP has shown little interest in the previously ruling Democratic Party of Japan’s plans to phase out the use of reactors by 2030. Thus far the election winning party has been vague about its plans for returning to nuclear power, hinting at restarting reactors within three years if they are “deemed to be safe.”

[via Trading Room]