Luiz Inacio Lula da Silva re-elected president as markets tumble
Business
Brazil's financial markets dropped sharply after Luiz Inacio Lula da Silva was re-elected president.
Investors, who had favored a victory for his opponent, reacted fast: an exchange-traded fund (ETF) tracking Brazilian stocks fell 16% in Japan, the biggest dip since 2020.
The Brazilian real also looked set for a major slide against the US dollar.
Investors worry about Brazil's debt
Lula's win has investors concerned about Brazil's heavy public debt, now over 82% of GDP, which is making it more expensive for the government to borrow money.
Lula says he'll protect social programs and raise the minimum wage while keeping spending in check, but with inflation still high and limited room in the budget, balancing these promises won't be easy.