UPDATE 5-Turkish verdict brings relief to markets, economy

(Recasts with court verdict, fresh quotes)

By Daren Butler

ISTANBUL, July 30 (Reuters) - Turkish markets had a strong boost on Wednesday from a court ruling rejecting an attempt to close the governing AK Party in a case which has weighed on investor sentiment for months, analysts said.

The verdict was also set to bolster the economy which is showing signs of slowing after years of strong growth, although political tensions were expected to persist.

Before the verdict, shares had already jumped more than 5 percent, the lira surged more than two percent. Turkey's benchmark global bond due in 2030 TRGLB30=RR rose sharply following the ruling.

"The ruling is resoundingly positive in the immediate term, and the stage could be set for a bull run on Turkish assets in the coming days," said Ivailo Vesselinov, an economist with Dresdner Kleinwort.

"Political noise is set to subside in the short term, but the Constitional Court ruling does not spell the end of political tensions or bring the wrangle between the AKP and secularists to an end," he said.

The ruling calmed fears that economic and political reforms which Turkey must implement to gain entry to the European Union could slow down.

"Ultimately there are a lot of vested interests, certainly from the business community, that do not want to see Turkey throw away the years of progress and reform," said Slim Feriani, managing director of Progressive Developing Markets in London.