Luka left an comment asking my take of the recent Hoo ha of Thai Baht policy in Thailand. I tried to read some materials on this topic again. Here is a chart to show the reaction of Asian Bources after the announcement I found on online newspaper.
In Singapore, stock index shedding 2.2 percent, its biggest drop since June. Malaysia’s bourse shaved off 2 percent, it largent loss since May.
The change of tone of Thai Finance Minister:
“After consulting with brokers, investors and all parties concerned, the Bank of Thailand and Finance Ministry will waive that 30-per-cent lock-out required for the foreign investment which invests in the SET.” See how did others comment on this policy.
To answer Luka’s question. I don’t see big implication for the region. Well, period. After Asian economic crisis which happened about decade ago, countries like Malaysia , Thailand, Singapore etc are recovering with better foundation. Better corporate earnings. Yup, maybe there are really some speculations of currency, however, the economy condition now is quite different from 1997. So another melt down? Maybe. But I am not putting my bet on it.
Looking at the reaction of Asian stock indices. Do you think it is something to be amazed? I don’t think so. It was just some normal reflection of news. In fact, i am looking forward more sell down after the recent gain.
Just my unprofessional random rant over this topic.