Chile Assets Reverse Post-Vote Rally as Focus Shifts to Delivery

Chilean assets reversed early gains on Monday that followed José Antonio Kast’s landslide victory in Chile’s presidential election, as attention switched to whether the ultra-conservative can deliver on his free-market pledges.

The benchmark IPSA stock index jumped as much as 1% — hitting a record high — before changing course and dropping into negative territory, while the peso also reversed early gains to edge lower. Still, the cost of insuring Chilean debt against default over the next five years extended last week’s declines, falling to the lowest since January 2020.