Argentine President Javier Milei scored a major win for his La Libertad Avanza (LLA) party in Argentina's October 26 midterm legislative elections, as the party obtained approximately 40.84% of the nationwide vote with 99.14% of the votes counted, according to official results.

The Peronist coalition of Fuerza Patria trailed with 31.64% of the national vote, followed by Provincias Unidas with 7.12% and the left-wing Frente de Izquierda Unidad at 3.91%.

Surpassing even the rosiest projections, LLA boosted its seats in the House of Deputies from 37 to 64, while the right-wing party remains on track to win 16 of 24 Senate seats that were up for grabs, although official confirmation is still being awaited at the time of writing.

“It was an unexpected result,” Roberto Nolazco, a political scientist at Argentina’s Catholic University, told the NYT. “Even for the government.”

Surprisingly, LLA recorded a victory even in Buenos Aires province, obtaining 41.5% of the vote and narrowly defeating the Peronist coalition, which got 40.8%, marking a notable contrast from the party's defeat in the province during the September election which rattled investors and triggered a currency crisis.

At his victory rally, Milei said that the government had crossed "the turning point" for the country's reconstruction. "How beautiful the purple colour looks for the country," he stated in the televised address. "We must strengthen the reformist path over the next two years to consolidate growth and Argentina's definitive takeoff," he continued, referring to his economic austerity agenda.

Argentine stocks in New York rallied following the election results, with stocks appearing set to rally in the October 27 trading session. Several Argentine companies have already seen their stock prices spike, with BBVA leading the surge by 15.7% followed by Banco Galicia with a 12.9% rise, and national oil company YPF gaining 11.95% in pre-trading, according to Noticias Argentinas.

Stocks have rallied on several occasions following economic measures implemented by the Milei government, with local markets surging after the US financial aid kicked in.

This result provides Milei with the additional Congressional support he needs to advance his ambitious economic plans. The US has agreed to a $20bn currency swap with Argentina while also developing an additional $20bn facility to invest in Argentine sovereign debt. With US President Donald Trump seemingly hinging his investment on his support for Milei, this election result could serve to solidify the US-Argentine relationship.

"Congratulations to President Javier Milei on his Landslide Victory in Argentina. He is doing a wonderful job! Our confidence in him was justified by the People of Argentina," Trump said on Truth Social as the results were announced.

The libertarian president's economic measures also enjoy the backing of the IMF, with a $20bn programme underway. With Buenos Aires' total exposure to the fund estimated at around $55bn, LLA's victory is all the more important, assuring the global lender that Argentina's austerity measures remain on track as the country seeks to continue meeting the requirements of the IMF deal in the hopes of securing upcoming disbursements on time and as expected.

"For foreign investors, this outcome is a relief because it shows that the Milei programme can be sustainable," said Marcelo J. García, America's director for the geopolitical risk consultancy Horizon Engage, as quoted by AP.

"It leaves the opposition weakened and fragmented, just as it was when Milei won the presidency in December 2023."

The results validate Argentines' support for Milei's economic efforts, demonstrating that voters are willing to endure unpopular public spending cuts in pursuit of broader economic recovery.