Peru's Fujimori Claims Vote Fraud in Presidential Race as Castillo Pulls Ahead

Peruvian markets rebounded from Monday’s losses as the leading presidential candidate sought to reassure investors who were preparing for a drawn-out count of Sunday’s vote.

Benchmark bonds pared more than half of the decline as the leftist Pedro Castillo, who has an 80,000-vote lead with more than 95% of ballots counted, sent a statement saying he would pay the country’s debt and keep central bank independence. The sol and the main stock gauge edged higher.

Castillo said in a statement late Monday that if elected his administration would maintain a dialogue with business leaders. He also ruled out nationalizations, the confiscation of savings and any price, currency or import controls. He reiterated a need for higher social spending on health care and education.

“We will keep an open and wide dialogue with various business sectors and with honest entrepreneurs who play a fundamental role in the country’s industrialization and development,” he said in the statement.

Castillo’s opponent, the market favorite Keiko Fujimori, said the rival party has been “distorting or delaying” the results of the election. She provided no evidence to back up her claim, but said she would do so. Fujimori, who lost by a razor-thin margin in the 2016 runoff, has said that she regrets not seeking a recount five years ago.

Peru is headed for days of political uncertainty as the final votes are tallied and officials contend with any sustained dispute. But the small number of votes separating the contenders also provided relief to investors encouraged by the idea that neither candidate would have the political mandate to overhaul one of South America’s steadiest economies.

“The divided legislature and the divided country of a weak, second-round victory should offer some counterchecks to radicalism,” said Siobhan Morden, head of Latin America fixed income at Amherst Pierpont Securities in New York.

Subscribe to our YouTube channel

Bloomberg Quicktake brings you live global news and original shows spanning business, technology, politics and culture. Make sense of the stories changing your business and your world.

To watch complete coverage on Bloomberg Quicktake 24/7, visit or watch on Apple TV, Roku, Samsung Smart TV, Fire TV and Android TV on the Bloomberg app.

Have a story to tell? Fill out this survey for a chance to have it featured on Bloomberg Quicktake

Connect with us on…

Breaking News on YouTube