Ollanta Humala, the left wing candidate in the presidential election appears to have won. He is reported as having received 51.3% of the vote, with his opponent Keiko Fujimori getting 48.7%.
Fujimori did well in the cities, as expected, but when the rural results started to come in, the balance quickly moved in favour of Humala.
In total some 20 million Peruvians were entitled to vote.
The result is likely to lead to a fall in the markets following weeks of nervousness at the possible result. Humala has threatened a strong left wing manifesto which, although he toned it down in the second round, would attack the business community, especially pension funds and mining companies in favour of a redistribution of wealth to the rural poor.