(Bloomberg) — Markets in three of the largest emerging economies got a boost after Turkey’s sovereign rating was upgraded, and as the outlooks for both Egypt and Nigeria were lifted.

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Turkey’s five-year credit-default swaps traded at the lowest since February after the sovereign’s rating was upgraded by S&P Global Ratings, which cited the government’s return to more orthodox economic policies. Egypt’s credit rating outlook was raised to positive from stable by Fitch Ratings, after the North African nation secured an international bailout. Egypt’s dollar notes due in 2047 rose to the highest in more than three weeks.

Nigeria’s credit rating outlook was also lifted by Fitch to positive, as reform progress since President Bola Tinubu’s assumption of power last year has been faster than anticipated.

Wider sentiment remained upbeat as a rally in Asian equities continued, with stocks listed in Hong Kong and Taiwan among leading gainers. Emerging-market equities rallied for a third day, up 0.6% by 10:46 a.m. in London.

Shekel Drops

A lighter calendar of economic data this week and a UK bank holiday Monday may be reducing volumes on some markets, with support still seen from revived bets on Federal Reserve rate cuts.

“European markets are holding on to this rate cut optimism amidst relatively quiet trading this morning, with equities posting modest gains and bond yields taking another leg down,” Rabobank said in a note Monday.

The shekel slid 1% against the dollar, the most since mid-April, after Israel’s military began moving civilians out of Rafah, a possible prelude to a long-expected attack on the Gazan city.

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