May 12 (Reuters) -

Pakistan's stocks soared by nearly 10% and its international

bonds also recorded strong gains on Monday after a ceasefire

deal with neighbouring India agreed over the weekend fuelled a

relief rally.

Pakistan's main stocks benchmark - the KSE-100 share

index - rose 9.6%, its highest level since April 23.

The country's international bonds rallied sharply,

adding as much as 5.7 cents in the dollar, Tradeweb data showed.

Most of the maturities have clawed back the losses sustained

since the April 22 attack in Indian Kashmir on Hindu tourists

that killed 26 people and sparked the worst clashes between the

nuclear-armed neighbours in more than two decades.

Adding to positive momentum was a

sign-off

by the International Monetary Fund executive board on

Friday of a $1 billion tranche in financing of its $7 billion

loan programme with the fund. The board also greenlighted a

fresh $1.4 billion loan under its climate resilience fund.

Saturday's ceasefire in the Himalayan region, announced

by U.S. President Donald Trump, followed four days of fighting

and diplomacy and pressure from Washington.

"After four days of tense clashes that pushed India and

Pakistan close to war, a ceasefire appears to be holding after

being announced on Saturday," said Jim Reid at Deutsche Bank in

a note to clients.

The gains in stocks came after the exchange halted

trading on Monday for an hour, according to an exchange

notification.