Three months of political turmoil in Thailand is starting to benefit neighbouring economies, as fund managers pull money from the country, long-term investments are reconsidered and tourists avoid Bangkok.
Foreign investors have withdrawn US$3 billion from Thai stocks since protests began Oct 31, exchange data show. They have put $190 million into Indonesian shares in 2014 even after the Jakarta Composite index fell 3.9% in two days through Jan 27 amid an emerging-market selloff.
Thailand has fared relatively worse than Southeast Asian neighbours as global investors shift money from emerging markets amid the US Federal Reserve’s plan to cut stimulus. Thai Prime Minister Yingluck Shinawatra declared a state of emergency in Bangkok on Jan 22 after protests aimed at toppling her intensified, and the government cut its 2014 growth forecast twice in a month. Long-term investors may consider countries including Indonesia and Vietnam because of the unrest, Toyota Motor Corp. Thailand President Kyoichi Tanada said last week.
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