Thai stocks gained 0.7 percent on Wednesday as a crackdown on anti-government demonstrators boosted hopes of an end to nine weeks of protests, prompting local investors to buy beaten big-cap energy shares and banks. Thai stocks bucked the wider trend, although foreign investors were net sellers.
Elsewhere in Southeast Asia, markets closed lower on worries about moves by authorities in the euro area and the United States towards tighter financial regulation.
Thailand's finance minister, Korn Chatikavanij, said the military clampdown in Bangkok marked the beginning of the end of the protests, which had caused only a "blip" on the economy. However, after troops had stormed the encampment, rioting and fires swept Bangkok. The prime minister imposed a curfew and the stock exchange said it would close for the rest of the week.
Thailand's main index ended 0.7 higher, reversing earlier falls. Siam Commercial Bank led the gains by rising 1.54 percent but is down 14 percent since hitting a March high. Kasikornbank rose 0.86 percent and is now down more than 14 percent since an early April high. Top energy firm PTT PCL increased 0.8 percent and has dropped 12 percent since hitting an early April high.
Although the Thai index gained, foreign investors sold a net 4.7 billion baht of stocks on Wednesday. David Lim, Southeast Asia head at Swiss private bank Julius Baer, said while foreign investors are alarmed about events in Thailand, the bank's Thai clients have stood pat. Singapore's stock index closed at its lowest level since early March, while Malaysia's main index finished at its weakest level since mid March. The Philippines dropped 1.3 percent, Jakarta fell 3.7 percent and Vietnam dropped 2.6 percent.
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