By Jeffrey T. Lewis, Rogerio Jelmayer and Luciana Magalhaes
SÃO PAULO—Brazilian shares jumped and the real surged against the dollar after pro-business candidate Aécio Neves performed better than expected and placed second in Sunday’s presidential election.
Mr. Neves will face President Dilma Rousseff, who finished with the most votes Sunday, about 42%, in a runoff on Oct. 26. Mr. Neves received about 34%.
The benchmark Ibovespa stocks index closed 4.7% higher at 57,115 after jumping more than 7% shortly after the session opened. The real exited active trading at 2.4298 to the dollar, according to Tullett Prebon via FactSet, after closing at 2.4724 to the dollar on Friday.
Investors have complained about Ms. Rousseff’s economic policies, which they say have hurt growth. For weeks Brazilian shares have risen and the real strengthened on any bad news for the president, and vice versa.