Lula's unexpected victory in the second round of Brazil's presidential election has upended bullish expectations for Brazilian assets. On Monday, an ETF tracking Brazilian stocks in the Japanese market plunged by as much as 16% at one point, marking its largest single-day drop since 2020. In the A-share market, the Brazil ETFs, ChinaAMC Brazil ETF and E Fund Brazil ETF, both hit their downside limits during the call auction. CME exchange currency derivative contracts showed the Brazilian Real against the US Dollar at 5.55, a decline of over 10% from Friday's closing price. Analysts anticipate that the São Paulo market may trigger circuit breakers after Monday's open, with the Real potentially falling another 8% to 10%, and local government bond yields possibly fluctuating by 150 to 200 basis points.