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| Version 0 | Version 1 |
|---|---|
| Markets calm following Thai coup | Markets calm following Thai coup |
| (10 minutes later) | |
| Asian markets have slipped after the coup in Thailand, but losses were limited with investors reassured by the fact the takeover was bloodless. | |
| Martial law saw Thailand's government offices, stock exchange and banks shut, although the Thai baht saw its biggest daily fall in three years. | Martial law saw Thailand's government offices, stock exchange and banks shut, although the Thai baht saw its biggest daily fall in three years. |
| The takeover had a light impact on the Japanese stock market, down 1%, and in Singapore, where shares fell 0.8%. | |
| Investors said the coup could help end months of political uncertainty. | Investors said the coup could help end months of political uncertainty. |
| Debt repayments | Debt repayments |
| Pressure had been growing on Prime Minister Thaksin Shinawatra to resign following a political impasse in which April's general election was declared invalid. | |
| Economically the circumstances are very different from 1997 Hugh Young, Aberdeen Asset Management | |
| Mr Shinawatra's reputation had also been damaged earlier in the year when his family sold its stake in Shin Corp, Thailand's biggest telecoms firm, without paying any tax. | |
| "It has been a rumour for the last three or four months that a coup was imminent, and I think the reason behind it... has been Thaksin's reluctance to stand down from power," said Hugh Young from Aberdeen Asset Management in Bangkok. | |
| On the currency markets, the Thai baht fell against the US dollar, with the dollar rising to 37.75 baht from Tuesday's closing price of 37.30. Earlier on Wednesday the dollar had risen as high as 37.95 baht. | On the currency markets, the Thai baht fell against the US dollar, with the dollar rising to 37.75 baht from Tuesday's closing price of 37.30. Earlier on Wednesday the dollar had risen as high as 37.95 baht. |
| 1997 crisis | |
| A major shift in the baht helped to trigger the Asian financial crisis of 1997, which hit currency and share prices across the region, devastating many regional economies. | |
| The Thai baht has fallen sharply against the US dollar | |
| It also damaged the reputation of the International Monetary Fund (IMF), which was criticised for the strict economic terms it applied to the rescue packages to countries affected by the crisis. | |
| Rodrigo de Rato, the head of the IMF, said he was keeping a close eye on Asian markets following the Thai coup. | |
| "We have certainly not seen up to now any financial consequences but as I said before, we are monitoring the situation." | "We have certainly not seen up to now any financial consequences but as I said before, we are monitoring the situation." |
| Mr Young told the BBC that a similar crisis was unlikely to develop. | |
| "Economically the circumstances are very different from 1997. Companies are well run, there is no speculation on the Thai stock market and currency is floating far more freely that in used to," he said. | |