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Sun, Aug 14 2011 Underwater volcano erupts off Oregon coast Wed, Aug 10 2011 Stage collapse kills four Sat, Aug 13 2011 Primary win boosts chances of Argentina's Fernandez Tweet Share this Email Print Related News Primary win boosts chances of Argentina's Fernandez 2:41am EDT UPDATE 5-Fernandez has wide lead in Argentina primary-exit poll Sun, Aug 14 2011 Argentine primary tests Fernandez electoral clout Sun, Aug 14 2011 Michele Bachmann wins Iowa Republican test Sat, Aug 13 2011 WRAPUP 4-Bachmann wins Iowa Republican test, Perry jumps in Sat, Aug 13 2011 Analysis & Opinion Kocherlakota explains Fed dissent Reuters/Ipsos poll: Majority says U.S. on wrong track Related Topics World » Argentine President Cristina Fernandez de Kirchner waves to supporters after the announcement of the first results of the nationwide primary election in Buenos Aires August 14, 2011. Credit: Reuters/Enrique Marcarian By Simon Gardner and Alejandro Lifschitz BUENOS AIRES | Mon Aug 15, 2011 9:03am EDT BUENOS AIRES (Reuters) - Center-left Argentine President Cristina Fernandez looks set to win a second term in October and deepen her interventionist policies after thrashing rivals in a primary election, results showed on Monday. With nearly 97 percent of polling stations counted, Fernandez had just over 50 percent of the votes -- 38 points ahead of both centrist opposition congressman Ricardo Alfonsin and former President Eduardo Duhalde. Hermes Binner, the socialist governor of Santa Fe province, won 10.3 percent of votes, official data showed. Sunday's primary was effectively a nationwide opinion poll because the parties had already chosen their candidates and voters could cast ballots for any candidate. The results showed Fernandez, who has rankled Wall Street by imposing price controls, nationalizing private pension funds and publishing inflation data far below private estimates, on track for a first-round win on October 23. A booming economy in the major grains-producing nation, Latin America's third-largest economy, has helped Fernandez, though she has enraged farmers and grain exporters with corn and wheat export curbs and policies that strengthen the hand of the state. "With the three leading candidates in the opposition practically tied, the probability of someone stepping down to consolidate the vote against the government seems unlikely," Felipe Hernandez, an RBS analyst, wrote on Monday. Fernandez faces major economic challenges, including taming inflation, estimated at around 25 percent, without hurting growth and cutting spending, and finding a way to repay debt without draining central bank reserves. Her "strong support ... reduces the probability of the government proactively adjusting economic policy, despite evidence of imbalances and market concerns about sustainability in the medium and long term," Hernandez added. Late Sunday night, Fernandez's cheering supporters waved flags and images of her late husband and presidential predecessor, Nestor Kirchner. Some held aloft images of Argentine-born revolutionary icon Ernesto "Che" Guevara. "I voted for Cristina because I see my children's progress. They all have jobs, homes, cars. We used to travel by donkey," said Aida Peralta, 81, as she celebrated to the sound of drumming outside the president's campaign headquarters. Financial markets have already priced in a second four-year term for Fernandez, but some investors hoped a strong opposition contender would emerge and spark a bond and stock rally. As of 1255 GMT, Argentina's debt spreads over comparable U.S. Treasuries had widened by 2 basis points to 718 basis points, while most other nations' spreads tightened, according to the benchmark JP Morgan Emerging Markets Bonds Index Plus. "These (election) results should be seen as a confirmation of what the market was pricing: Cristina Kirchner will be re-elected in the first round. We don't expect significant negative market reaction to this news," Barclays Capital said. Fernandez's two main opponents, Alfonsin and Duhalde, a dissident from her own Peronist party, fared worse than expected, polling only around 12 percent each. The law prohibits them from forming an alliance. FARMING HEARTLAND BACKS FERNANDEZ Fernandez, 58, won strong support in urban and rural areas -- including farming centers -- and has a wide lead in opinion polls. Voter turnout was high at nearly 78 percent. Many Argentines credit Kirchner and Fernandez with reviving the economy after a 2001/02 financial crisis, when Argentina declared a record debt default that made it a market pariah. "I call on everyone to think about the big picture, to be united. The world is in difficulty but if we manage to get over our differences ... we can learn to make fewer mistakes," Fernandez told supporters, extending an olive branch to her rivals. She also paid tribute to Kirchner, who died last year, and has vowed to push on with and deepen his policies that foster import substitution and subsidies for the poor. Argentina's economy is expected to grow 8 percent this year, as high grains prices and strong demand from neighboring Brazil boost revenues despite economic turmoil in the United States and Europe. Fernandez needs to capture 45 percent of the vote in October to win re-election outright. She could also avoid a run-off with 40 percent plus a 10-point lead over the runner-up. "With around 50 percent of the vote, she is on the way to winning in the first round," said Mariel Fornoni, director of political consultancy Management & Fit. "What's more, the opposition scenario is very complex. It looks unlikely an opposition leader can rally the anti-Kirchner vote behind them." (Additional reporting by Hilary Burke, Hugh Bronstein, Karina Grazina, Jorge Otaola, Nicolas Misculin, Guido Nejamkis, Juliana Castilla, Luis Andres Henao, Maximilian Heath; Editing by Paul Simao) World Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) 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