Javier Milei‘s unexpected landslide in Argentina's midterm elections is electrifying the country’s assets, with stocks and bonds surging in a show of confidence rarely seen among emerging market investors.

The Global X MSCI Argentina ETF (NYSE:ARGT), the only U.S.-listed ETF focused solely on Argentine equities, rallied over 18% Monday morning, on track for its largest daily gain ever. At the same time, dollar-denominated Argentine bonds jumped 10 to 15 cents, reflecting a sharp compression in political risk after the vote.

The market's euphoria reflects the scale of Milei's political breakthrough, as his libertarian coalition La Libertad Avanza secured 41% of the national vote and is set to nearly triple its congressional representation—jumping from 37 to 101 deputies and from 6 to 20 senators.

With this surge, Milei now holds the legislative firepower to accelerate his sweeping libertarian reforms, from slashing government spending to overhauling Argentina's tax system.

Chart: Argentina’s Equity ETF Jumps After Milei’s Midterm Election Victory

The Virtuous Cycle Can Resume

"The result brings back the prospect that Argentina might regain market access," said Adrián Yarde Buller, chief economist at Facimex Valores, ...