Thai shares, currency rebound despite Brexit
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The Stock Exchange of Thailand Index continued its gain on Tuesday, as investors are convinced of limited impact of Brexit to Thailand's economy, said Tisco Securities.
Proving this is the slight increase in SET Index today. The index ended the day at 1,437.42 points, gaining 13.11 points or 0.92 per cent.
Meanwhile, the Thai baht also gained against US dollar. It strengthened to Bt35.28 per dollar at 6.45pm, against Bt35.32 on June 24, a day after the UK voted to leave the EU (Brexit).
While downgrading the UK's sovereign credit standing, Standard & Poor's said in a research that Brexit's direct real impact on Asia-Pacific economies is likely to be limited since the relevant linkages are weak.
"Whether we get any measurable real impacts from Brexit depends on a couple of things. One, on how long the market volatility lasts, and whether it begins to spill over to the real economy. And two, whether we get any political aftershocks, including EU exit/entry votes, from other European markets," said S&P Global Ratings' Asia-Pacific chief economist Paul Gruenwald.
