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Weakening Thai Economy Signals Trouble for Asia’s Top Assets

  • Stock gauge up almost 7% in June, biggest gainer in Asia
  • SCB Asset Management sees the market rally as short-lived
Baht Outperforms Regional Peers
Photographer: Brent Lewin/Bloomberg
Updated on

June is shaping up to be one of the best months for investors in Thailand as the nation’s currency, bonds and stocks outperform in Asia, but the market rally now faces formidable economic and political risks.

Thailand’s markets have been boosted by almost $4 billion of foreign inflows this month as the central bank held off from interest-rate cuts, helping support bonds and the currency. But even the Bank of Thailand has voiced concern over the baht’s strength and said it has intervened in the market, while economic growth prospects are worsening.