Right-wing senator Flavio Bolsonaro won the first round of Brazil’s presidential election on October 4 with 47 per cent of the vote, exceeding polls and beating President Luiz Inacio Lula da Silva, who secured about 45 per cent, Reuters reported. The two will face each other in a runoff on October 25.

Polls had forecast Lula would lead the first round by around three percentage points. Bolsonaro is the son of former President Jair Bolsonaro, who is serving a 27-year sentence for plotting a coup after losing the 2022 election. Twelve candidates contested the first round.

The campaign was dominated by concerns over the cost of living, corruption and crime. Le Monde reported that Lula admitted ‘the results are often unexpected’ and promised to focus on the 30 million voters who did not participate.

Brazilian markets were expected to rally on Monday. The Frankfurt-listed MSCI Brazil ETF jumped more than 14 per cent in overseas trading, and portfolio manager Thierry Larose of Vontobel told Reuters he expected a strong rally across Brazilian assets.