Brazil's real firmed more than 2 percent on Monday and stocks were on track to mark their highest close in nearly five months, after a strong first-round showing for far-right presidential candidate Jair Bolsonaro raised hopes for much needed economic reforms.
The real rose for a sixth straight day, and the benchmark stock index was 4.4 percent higher led by gains in state-run power companies Eletrobras and Cemig which added more than 17 percent each.
Stocks in Buenos Aires' Merval index also rose, with local shares of Brazil's state-run oil firm Petrobras leading gains with a more than 10 percent rise. The peso rose for a fifth session in six, buoyed by central banks sale of short-term notes at uber high rates.
Meanwhile, Mexico's currency declined as the dollar gained on worries on Italy's budget. Stocks on Mexico City's IPC tracked a slump in global equities led by Chinese stocks on rising fears of the Sino-US trade war.
State-controlled oil company Petrobras surged nearly 11 percent and was the biggest point contributor to the Bovespa's rally, as concern eased about a potential win for Haddad, whose Workers Party had threatened to interfere in the company's management.
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