Brazilian President Lula da Silva won re-election, marking the first time since the implementation of Brazil's current two-round presidential election system that a candidate who trailed in the first round has won in the second. The market was also surprised by the election results. As the vote count progressed, market predictions of a win for either candidate reversed, the "Bolsonaro deal" collapsed, and Brazilian stock ETFs listed in Japan plummeted 14% due to the loss of expectations. In the first round of the Brazilian election, Flavio, son of the former president, received approximately 47% of the valid votes, placing him first; Lula came in second, trailing by about 2 percentage points. The core rule of Brazil's two-round election system is that a candidate must receive more than half of the valid votes in the first round to be directly elected; if no candidate reaches this threshold, the two candidates with the most votes advance to a second round to determine the winner.
