Recep Tayyip Erdo?an’s strong showing in Sunday’s election has prompted rating agencies to warn of a fresh sell-off in the lira if the Turkish president continues his “unsustainable” economic policies.

Turkish assets have sustained a blow after Erdo?an beat his rival Kemal K?l??daro?lu in the first round vote, heightening his chances of prevailing in a May 28 run-off. The cost to insure Turkey’s debt against default has jumped over the past two days, with the “spread” on five-year credit default swaps rising to 646 basis points from 506bps on Friday.

The selling in Turkish assets came as investors reversed bets that K?l??daro?lu, who led in pre-election polls, would bring Turkey back to a conventional economic policy, undoing a patchwork of programmes that have been put in place under Erdo?an’s leadership.