Results from the second round of voting for state governors in Brazil show a strong performance by candidates from the centre-left.

Pro-government candidates have either lost or are heading for defeat in three of the country's most important states.

Analysts say the resurgence of the left may make it harder for President Fernando Henrique Cardoso to push through austerity measures in order to restore confidence in the economy.

In Rio de Janeiro President Cardoso's preferred candidate has been comprehensively beaten and the result has also gone against him in Brazil's southernmost state, Rio Grande do Sul.

In the second-largest electoral college, Minas Gerais, the victor is the former president, Itamar Franco, who, although officially part of the governing centre-right coalition, is likely to maintain an independent line.

'something to smile about'

But by far the most important race was in the state of Sao Paulo, home to more than 30 million people and an economy about the size of Argentina's.

The result here should give Mr Cardoso something to smile about.

After a bitter, close-fought campaign, his friend, the social democrat Mario Covas, fought off a challenge from the right-wing populist, Paulo Maluf, and is to continue governing for the next four years.

Mr Covas has a reputation for fiscal austerity, a quality which the president values particularly highly at the moment.

Ever since he was re-elected three weeks ago, Mr Cardoso and his ministers have been working on a package of spending cuts and tax rises designed to save about $20bn and restore confidence among investors.

It is due to be announced in the next few days but will still need support from Congress and from the state governors who, under the Brazilian constitution, have a good deal of financial independence.