Peru election: vote count drags on with two candidates separated by under 1%

Data from Peru's national electoral office ONPE showed 93.4% of ballots counted, with López Aliaga on 50.4% and Mendoza on 49.6%. Most outstanding boxes are from Lima's peri-urban districts and the Cusco-Puno corridor. Diego García-Sayán, head of the OAS observer mission, said the process had run in a "transparent and orderly" manner.

Lima's General Index fell 1.7% intra-day, and the Peruvian sol weakened from 3.82 to 3.86 against the dollar. Bank of America strategist Carlos Capistrán wrote to clients that "if the count turns toward Mendoza, the risk of renegotiation on the big copper projects rises sharply." IMF mission chief Daniel Leigh confirmed that the country's $12 billion Extended Fund Facility would be renegotiated with the new government.

López Aliaga campaigned on tax cuts and privatising state-owned utilities. Mendoza proposes raising mining royalties on gas and copper from 8% to 14% and doubling the health budget. ONPE said it would announce the final result by Saturday morning. This is not investment advice.