Election Defeat of Argentina's Ruling Coalition Triggers Financial Market Turmoil

　　The defeat of Argentina's ruling coalition in the Buenos Aires provincial legislative election on the 7th has triggered severe turmoil in the country's financial markets on the 8th, with the Argentine peso falling nearly 6% against the U.S. dollar.

　　The ruling coalition "Liberty Advances," led by Argentine President Javier Milei, was defeated by the "Union for the Homeland" in the Buenos Aires provincial legislative election on the 7th. This outcome reflects public skepticism toward Milei's economic reform measures implemented over the past two years, leading to significant fluctuations in Argentina's financial markets.

　　On the 8th, the exchange rate of the Argentine peso against the U.S. dollar dropped to 1,425 pesos per dollar, while Argentina's benchmark stock index fell by 13%. The country's risk index surged past 1,000 points, reaching its highest level since October 2024.

　　Buenos Aires Province is Argentina's most populous and economically developed province, making its election results a bellwether. This outcome has added uncertainty to the Argentine congressional midterm elections scheduled for October this year. Analysts worry that Argentina's financial markets may experience continued severe volatility in the coming weeks.