Argentina's left-populist movement held first place and widened its lead compared to the 2023 elections by two percentage points.

The party of Argentina’s libertarian President Javier Milei has suffered a sweeping setback in the Buenos Aires provincial election that is viewed as a barometer of the party's performance in congressional midterms next month.

A heavy election defeat for Argentine President Javier Milei's ruling party in Buenos Aires province put the country's strained markets on track to extend a recent selloff, raising uncertainty ahead of a key October vote.

The gap in the Buenos Aires Province (PBA) election in favor of the opposition Peronists was much wider than polls anticipated and what the market had priced in. Based on official counts, the Peronists won 47.3% of the vote across the province, while the candidate of Milei's party took 33.7%.

The Buenos Aires provincial election is a test of Milei’s popularity ahead of upcoming congressional polls next month.

Argentina's markets tumbled on Monday after a heavy defeat for President Javier Milei's party at the hands of the Peronist opposition at local elections stoked worries about the government's ability to implement its economic reform agenda.