The Latest Breaking News from Asuncion

Asuncion (AFP) - Paraguayans on Sunday elected a president from the rightwing party in power for nearly eight decades, rejecting a center-left challenger who had railed against endemic institutional corruption.

Paraguay's President-elect Santiago Pena, a clean-cut former central bank director, will need all his wits and cool to steer the South American nation through economic headwinds hurting voters and rising pressure from farmers to cut ties with Taiwan.

Asuncion (AFP) - Future ties with Taiwan are in play as Paraguayans go to the polls Sunday to pick a president they hope will tackle endemic corruption, rising crime and economic inequality.

In the heart of Paraguay's capital Asuncion, a tropical city close to the Argentine border, voters are gearing up for election day on Sunday, with the economy, corruption and Taiwan on their minds.

From Paraguayan capital Asuncion to Taipei and Washington, diplomats, officials - and farmers - are closely watching a tight election race that could determine Paraguay's future ties with Taiwan.

Paraguay's ruling Colorado Party - a conservative political machine that has dominated government in Asuncion for some eight decades - could be facing a major challenge at the ballot box next month.

The External Affairs Minister to embark on three-nation tour covering Argentina, Brazil and Paraguay

The United States has accused former Paraguayan President Horacio Cartes of "significant corruption" and of obstructing a cross-border criminal investigation.

The second day of the Asuncionico festival in Paraguay that she was due to play in was cancelled due to the extreme weather conditions