Argentina enters new political era as Kirchner dies

BUENOS AIRES (Reuters) - Hundreds of Argentines waited in line on Thursday to pay tribute to Nestor Kirchner, the powerful former leader whose death robbed President Cristina Fernandez of her husband and most trusted ally.

Kirchner, 60, was widely seen as the most influential figure in his wife's government, which has maintained the same statistic economic measures that supporters say lifted the country out of the doldrums after a 2001-2002 crisis.

The combative Kirchner, who died of a heart attack on Wednesday, was widely expected to run for a second term in a presidential election next October. His death increases the possibility that Fernandez, who has higher approval ratings than her late husband, will seek re-election.

Local financial markets, which were closed on Wednesday for a public holiday, were expected to open higher following gains by Argentine assets traded abroad.

Investors saw Kirchner as hostile to business. But his departure from Argentina's fractious political scene heightens uncertainties before the 2011 vote.

"Nestor Kirchner was viewed as the builder of alliances ... and his passing will create a void that may be difficult to fill," Credit Suisse economist Carola Sandy said. "As such, (the president) might have a very difficult time maintaining the current Kirchner coalition and the support of the unions."

Analysts say Fernandez -- who, like her husband is known for antagonizing business leaders and pushing policies that frustrate investors -- could adopt a more conciliatory approach in a bid to shore up her support.

But she will likely maintain the couple's small circle of advisers and Kirchner's death could boost her approval ratings as voters recall the boom years of his 2003-2007 presidency when South America's No. 2 economy expanded rapidly.

Some supporters camped overnight in the square facing the pink presidential palace, where regional leaders and political figures were due to attend a wake on Thursday. Ordinary Argentines started queuing up to pay their last respects.

"After General Peron, he's the best president we ever had," said housewife Estela Orellano, 56, referring to the former strongman whose figure still looms large in the nation's political life as the namesake of the Peronist party.

Tens of thousands of people packed the square into the early hours to show support for Fernandez, some tying bunches of roses, flags and condolence letters to the railings.

Posters carrying the slogan "Nestor forever, hang in there Cristina" appeared across the capital, Buenos Aires.

Argentina, a leading agricultural exporter, has benefited from a boom in commodities prices since its economic debacle nine years ago that plunged millions of Argentines into poverty and prompted a massive default and sharp devaluation.

But critics reviled Kirchner's interventionist economic policies and said he failed to put Argentina on a path towards sustainable growth or tackle high inflation.

Opponents of the power couple bristled at their outspoken attacks on companies, journalists and political rivals.

When farmers rebelled over a tax hike on soy exports in 2008, the centre-left Kirchner accused them of plotting a coup, and he increased state control over the economy, nationalizing several companies.

Financial markets never forgave him for the tough 2005 renegotiation of some $100 billion in defaulted bonds, which stuck creditors with a steep discount, and he was an outspoken critic of the International Monetary Fund.

A member of the dominant Peronist party, Kirchner built strong alliances as president that won him solid backing while also steering the party to the left and courting regional leftists like Venezuelan President Hugo Chavez.

Chavez is due to attend Kirchner's wake, along with other regional leaders such as Chile's conservative president, Sebastian Pinera, and Brazil's Luiz Inacio Lula da Silva.

Opposition leaders paid tribute to Kirchner's political savvy, but they may feel emboldened by his sudden departure. Fernandez's approval ratings are around 35 percent, too low to suggest she could win a first-round victory in the 2011 vote.

(Additional reporting by Magdalena Morales; Writing by Terry Wade and Helen Popper; Editing by Vicki Allen)