Baht rally stalls on China, bonds up
- Published: 1 Oct 2012 at 18.30
- Online news:
Thailand's baht stalled following its best quarter in two years after official reports today signaled an economic slowdown is deepening in China and Japan, the nation’s biggest export markets. Bonds gained.
Chinese factory output contracted for a second month in September and trailed economists' forecasts, while sentiment among large Japanese manufacturers worsened with pessimists outnumbering optimists last quarter, the Bank of Japan said. Thai overseas sales shrank for a third month in August and a slump in industrial production deepened, government reports showed last month.
"The global economy remains in a fragile state and exports will remain weak for a while," said Tanawat Ruenbanterng, an economist at Tisco Securities Co in Bangkok. "We will have to wait for next year to see some improvement," given that global stimulus measures will take time to have an impact, he said.
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