Chile’s markets reacted positively on Monday after the first-round presidential vote signaled a likely victory for far-right candidate Jose Antonio Kast in the December 14 runoff. Despite finishing just behind governing coalition contender Jeannette Jara, Kast emerged as the overall favourite after right-leaning candidates collectively secured more than 50% of the vote. Analysts said the result boosted investor confidence, with Vontobel’s Thierry Larose calling the outcome “moderately bullish” for Chilean assets.
The Chilean peso strengthened more than 1%—its best performance in over a month—though it still lags behind several Latin American peers that have posted double-digit gains this year. U.S.-listed shares of the iShares MSCI Chile ETF rose 2.1% in premarket trading, while Chile’s broader equity benchmark has surged over 46% since January, outperforming the MSCI emerging market index. Analysts from JPMorgan noted that stronger overall support for right-wing blocs reduces execution risks for pro-market reforms if Kast wins.
With the runoff set to pit two sharply opposing ideologies against one another, investors expect a potential Kast presidency to prioritise fiscal consolidation, attract investment, and strengthen growth. Aviva Investors’ Nafez Zouk said markets are encouraged by prospects of more centrist macroeconomic policymaking, noting that both candidates have centred their debate on the extent—not the existence—of fiscal tightening.
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