NEW YORK/LONDON, Oct 27 (Reuters) - Argentina's President Javier Milei won a surprise victory in legislative elections on Sunday, boosting the libertarian leader's free-market reforms and deep austerity efforts.

The president's party, La Libertad Avanza, took 41.5% of the vote in Buenos Aires province compared with 40.8% for the Peronist coalition, according to official results. The province has long been a political stronghold for the Peronists and the election marked a dramatic political shift.

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COMMENTS:

JPMORGAN

"The breadth of his victory, coupled with expanded representation in Congress, places his administration in a prime position to capitalize on the political and financial backing extended by Washington."

"This momentum sets the stage for ambitious macroeconomic reforms aimed at boosting private sector savings through tax and labor overhauls, unlocking direct investment, and accelerating stabilization efforts."

MIKE MCGILL, CO-HEAD OF EM DEBT, AVIVA INVESTORS

"In recent months, there has been a decent position reduction from investors across Argentine bonds, as concerns around Milei’s popularity raised questions around his ability to continue with much needed reforms. This result, along with the recently announced support from the US Treasury, should give investors a lot of confidence over the medium term. We expect money to flow back into the bond market post this result."

KARL SCHAMOTTA, CHIEF MARKET STRATEGIST, CORPAY, TORONTO

"Milei’s victory should insulate him against veto overrides and impeachment processes for now, but plunging approval ratings mean he could face difficulty in finding coalition partners to pass some of the most controversial planks of his agenda. Structural contradictions in the (Argentine) economy will continue to frustrate peso bulls for a long time to come."

ALEJO CZERWONKO, CIO FOR EMERGING MARKETS AMERICAS, UBS GLOBAL WEALTH MANAGEMENT

"Milei is now able to move forward with an ambitious deregulation agenda, pursue labor, tax, and potentially social security reforms in Congress, and implement changes to Argentina's FX regime."

"From a financial markets perspective, this electoral outcome was far from priced in. Ahead of the vote, Argentina's "country risk" - the spread its U.S. dollar sovereign bonds pay over U.S. Treasuries - was at distressed levels, as investors were extrapolating Milei's weak performance in September's Buenos Aires province election. With this result, Argentine risk assets should now benefit from greater political stability, a renewed push for pro-market reforms, and robust support from the U.S."

BRIAN JACOBSEN, CHIEF ECONOMIST, ANNEX WEALTH MANAGEMENT

"It was a surprisingly strong endorsement of Milei's policies. It's reasonable to expect that we could see an 'everything rally' given the resolution of the uncertainty. I'm expecting to see a return of the price levels on bonds to the pre-September levels if not better."

"The currency is still overvalued, but this result could encourage policymakers to continue to move the trading band to allow the currency to depreciate."

"This election result keeps the country in the 'nice' column of President Trump’s 'naughty and nice list.' The bulls can charge ahead."

PATRICIA URBANO, EMERGING EQUITIES PORTFOLIO MANAGER AT EDMOND DE ROTHSCHILD ASSET MANAGEMENT

"With the government and its allies now controlling over one-third of Congress, the victory increases the likelihood of structural reforms, spending control, strengthened US support, gradual easing of capital controls, and rebuilding USD reserves alongside a floating exchange rate."

"The result removes a significant political overhang on the Argentine equity market."

PAULO SALAZAR, HEAD OF EMERGING MARKETS EQUITIES AT CANDRIAM

"It has been a rollercoaster ride for Argentine investors, but this weekend’s results represent a genuine inflection point. For those with exposure to Argentina through equity or multi-asset strategies, the outlook is improving rapidly. The country remains a high-risk, high-reward market, but the direction of travel is now firmly toward reform, normalisation, and growth.

"After years of false dawns, there is a sense that this time could be different—and that belief alone may be enough to ignite a powerful new phase in the Argentine market story."

https://www.reuters.com/world/americas/investor-reaction-mileis-victory-argentina-midterm-congressional-vote-2025-10-27/