News Column

Thai stocks sink on coup, other global shares gain

May 24, 2014

Thailand's stock market sank on Friday, a day after the country's military seized power in a nonviolent coup.

Other world stock markets were mostly higher but Europe's gains were tempered as a polarised Ukraine braced for weekend elections.

In early European trading, Germany's DAX rose 0.2 per cent to 9,738.08 and France's CAC 40 rose 0.1 per cent to 4,484.16. Britain'sFTSE 100 shed 0.2 per cent to 6,806.33. Ukraine's presidential election could add to already high tensions between Russia and the West over the country's tilt toward the European Union.

Futures pointed to more modest gains on Wall Street before the Memorial Day long weekend. Dow futures were up 0.1 per cent to 16,537 and S&P 500 futures added 0.1 per cent to 1,891.50.

In Asia, Bangkok's SET index fell more than two per cent in early trading before moderating its losses to close down 0.6 per cent at 1,396.84. Thailand's currency stabilized after falling about 0.4 per cent against the dollar after the coup was announced early on Thursday evening.

The backdrop of potential instability and violence will weigh on the already struggling Thai economy and put pressure on its baht currency, Every said.

Elsewhere in Asia, Japan'sNikkei 225 closed up 0.9 per cent at 14,462.17 after the dollar climbed to near 102 yen overnight. A weaker yen is a plus for Japan's powerhouse export manufacturers.

Hong Kong's Hang Seng gained 0.5 per cent to 22,965.86 and Australia's S&P/ASX 200 added 0.2 per cent to 5,492.80. South Korea's Kospi rose 0.1 per cent to 2,017.

In energy trading, benchmark US crude for July delivery was up 11 cents at $103.85 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 33 cents on Thursday.

In currencies, the euro fell to $1.3620 from $1.3656 late on Thursday. The dollar rose to 101.85 yen from 101.79 yen.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Khaleej Times (United Arab Emirates)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters