Chile Assets Dive as Government Suffers Crushing Vote Defeat

  • Benchmark stock index fell 9.3%, the most in more than a year
  • Vote deprives the right of veto power over a new constitution
Supporters for left-wing parties celebrate in Santiago on May 16.Photographer: Marcelo Hernandez/Getty Images
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Chilean assets plunged after the ruling coalition suffered a surprise drubbing in the election for a constituent assembly, placing the writing of a new charter firmly in the hands of the left-wing.

The benchmark stock exchange closed down 9.3%, the biggest decline since the start of the pandemic in March of last year, while the peso fell 2.3%. Yields on Chile peso bonds due in 2030 jumped 22 basis points to 3.82%.