Thailand sneezes
Will Asia catch cold again?
NEW YORK (MarketWatch) -- Thailand's military government on Tuesday loosened newly imposed capital controls for foreign stock investors after the new rules triggered a hemorrhage in its own equity market and sharp losses in other Asian markets.
The abrupt change came after Bangkok's benchmark SET index tumbled 15% in Tuesday's session, the worst rout for that market since the Asia crisis of 1997. It was nearly 10 years ago that a run on the baht triggered a regional meltdown, roiling financial markets around the world.
Thailand, which underwent a coup in September, has been the target of financial speculators. Recent news of extended martial law in the country only fueled that speculation.
Although unlikely at this point, this could be the start of another round of Asian financial crises which rocked almost all of Asia back in 1997. The financial "Asian flu" depressed prices and weakened Asian currencies for years. It is one of the reasons that the US (and the rest of the world) saw depressed oil and gasoline prices in the late 1990s.
If you are long on commodities it may be a good time to take some profits. If you are short on the dollar (*cough*Soros*cough*) you may want to seek shelter. The dollar is historically the port of choice in financial storms.
NEW YORK (MarketWatch) -- Thailand's military government on Tuesday loosened newly imposed capital controls for foreign stock investors after the new rules triggered a hemorrhage in its own equity market and sharp losses in other Asian markets.
The abrupt change came after Bangkok's benchmark SET index tumbled 15% in Tuesday's session, the worst rout for that market since the Asia crisis of 1997. It was nearly 10 years ago that a run on the baht triggered a regional meltdown, roiling financial markets around the world.
Thailand, which underwent a coup in September, has been the target of financial speculators. Recent news of extended martial law in the country only fueled that speculation.
Although unlikely at this point, this could be the start of another round of Asian financial crises which rocked almost all of Asia back in 1997. The financial "Asian flu" depressed prices and weakened Asian currencies for years. It is one of the reasons that the US (and the rest of the world) saw depressed oil and gasoline prices in the late 1990s.
If you are long on commodities it may be a good time to take some profits. If you are short on the dollar (*cough*Soros*cough*) you may want to seek shelter. The dollar is historically the port of choice in financial storms.