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Foreign investors poured a record net 10.06 billion reais ($2.01 billion) into Brazilian stocks listed in Sao Paulo on Oct. 5, the highest single-day inflow on record, amid increased hopes that opposition presidential candidate Flávio Bolsonaro would address the country’s mounting fiscal problems and pave the way for interest-rate cuts if he is elected. The data was released by Brazilian exchange B3 SA on Wednesday.
The Ibovespa equity benchmark jumped 7.7% on Monday, the most in more than six years. Bolsonaro won a surprising 47% of the vote in Sunday’s first round, compared with 45% for incumbent President Luiz Inácio Lula da Silva.
Other Brazilian assets, including the real and exchange-traded funds listed abroad, also rallied as investors reacted to the result. Still, Bolsonaro has yet to put forward a detailed plan for tackling Brazil’s ballooning fiscal deficit. Brazilians will return to the polls to choose between the two candidates on Oct. 25.
Read more: Brazil Market Euphoria Hinges on Fixes Bolsonaro Hasn’t Laid Out