Markets in Peru climb higher as free-market candidates move on to election second round

 
Billy Bambrough
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Lima: Teeming City Of 9 Million Reflects Peru's Growing Pains
Peru remains largely undeveloped outside of Lima and its other bigger cities (Source: Getty)

Peru's markets have recorded their sharpest jump since 2008 after voting results showed two free-market candidates have moved on to the second round of presidential elections.

In early afternoon trading the Peru General Index was up more than eight per cent, falling back from highs of over 10 per cent in earlier trading.

The Peruvian sol currency added 2.68 per cent to bid at 3.25 per dollar.

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With two-thirds of votes counted, Keiko Fujimori, the conservative daughter of a jailed former president had taked 39.46 per cent, and centrist economist Pedro Pablo Kuczynski, widely known as PPK, had 23.73 per cent.

The two politicians parties also look set to dominate the countries congress.

Nationalist candidate Veronika Mendoza trailed with 17.12 per cent. Mendoza had previously called for reforms of Peru's 1993 constitution and said the countries powerful mining industry should be reined in. Markets have fallen over recent weeks on fears Mendoza could win office.

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It's expected that both Kuczynski or Fujimori would continue Peru's 25 year free-market model.

Peru is currently poised to over take China as the world's second-largest copper producer after almost two decades of uninterrupted economic growth.

The sinking copper price has however caused concern that the countries economy could suffer if the price of metals doesn't stabilise.

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