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July 5 (Reuters) - European stocks rose to more than

one-week highs on Friday after the Labour Party's return to

power in the UK general election gave investors a sense of calm,

while German chip systems manufacturer Aixtron rallied on

reporting strong orders.

The pan-European STOXX 600 index was up 0.4% by

0721 GMT, touching its highest level since June 26.

The UK's blue-chip FTSE 100 added 0.3% and the

domestically oriented FTSE 250 jumped 1% to one-month

highs after the Labour Party surged to a landslide victory in a

parliamentary election on Friday, ending 14 years of often

tumultuous Conservative government.

European tech stocks topped sectoral performance on

Friday with a 0.9% rise.

Aixtron rallied 15.5% to the top of STOXX 600

after the company reported a strong order intake in the second

quarter.

Other chip firms including ASM International, BE

Semiconductor and ASML Holding climbed

0.6%-1.1%, spurred by Samsung's prediction of a 15-fold surge in

second-quarter operating profit.

Varta ( VARGF ) jumped about 27% after the German battery

maker said it is in talks with Porsche over a

potential investment in its large-format lithium-ion battery

business.