By Froilan Romero and Fabian Cambero

SANTIAGO, (Reuters) – Chile’s stock markets stabilized Tuesday following sharp drops a day earlier. This was in response to a resounding victory of leftist Gabriel Boric as president. Boric has promised to change the country’s market-oriented economy model.

In early trading, the peso currency shot up 0.85% to 867 dollars per dollar while benchmark stock index rose 2.45%. Both were in sharp decline on Monday as the peso fell to new lows versus greenback.

Boric on Monday pledged to maintain an “orderly economy” and to move swiftly on naming his cabinet, a day after a sweeping electoral victory propelled him to become Chile’s youngest-ever democratically-elected president.

Jose Antonio Kast was defeated by the former student leader and now leads a leftist coalition. Kast quickly admitted defeat which gave certainty to this result.

Boric’s rise and wider polarization of votes had shaken Chile’s markets. It also spooked miners concerned by his rhetoric to “bury” the country’s market-oriented economic model, increase taxes, and tighten environmental regulations.

After appearing to soften his policy position in recent weeks, the country’s markets will be very interested to see what appointments Boric makes to his first Cabinet.