Former union leader Mr Luiz Inacio Lula da Silva is on course to become Brazil's next president after winning the weekend's first-round vote.
The 57-year-old populist, whose left-wing policies have unnerved investors worldwide, fell short of outright victory in uesterday's election but is expected to win the October 27th run-off against Mr Jose Serra.
With 90 per cent of the votes counted, Mr da Silva had 46.6 per cent of the votes compared to 24 per cent for Mr Serra, who had the backing of Brazil's ruling Social Democratic Party.
The prospect of Mr da Silva attaining office has left world markets skittish, with Brazil, the world's 11th-biggest economy, facing more than $200 billion in foreign debt and the value of its currency down 40 per cent since the start of the year.
Mr da Silva pledged widescale social change but was largely seen as a moderate after easing back on some of the fiery socialist rhetoric he used in three previous failed runs for the presidency.
Mr da Silva, a former metal-worker, now says he supports free trade as long as richer countries give Brazil fair access to their markets. He pledged to respect Brazil's financial commitments and abide by the terms of a $30 billion package from the International Monetary Fund.
AFP