3 southern airports, train station, mata HQ taken by protesters. mata withdrawn from PM office. PAD made progress!
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http://www.upi.com/Top_News/2008/08/29/Protesters_shut_down_Thailand_airports/UPI-77311220013748/
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Protesters shut down Thailand airports
Published: Aug. 29, 2008 at 8:25 PM
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<iframe id="email_story" style="border: 0px none ; height: 300px; width: 600px; display: none;" frameborder="0"></iframe> BANGKOK, Aug. 29 (UPI) -- Three airports in southern Thailand were shut down Friday because of vandalism by protesters. Rail service has also been disrupted with about 30 percent of the lines closed by strikers, the British newspaper The Independent said.
Officials said that Phuket International, Krabi and Hat Yai would be closed indefinitely, the Thai News Agency reported.
In Bangkok, officials denied using tear gas on a crowd who rallied outside the Metropolitan Police headquarters Friday evening, TNA reported. But many in the crowd suffered eye irritation.
Thousands of people this week have demanded the ouster of Prime Minister
Samak Sundaravej and the coalition government. But he said Friday he does not plan a crack down on the People's Alliance for Democracy, which is leading the protests.
"I have several tools at my disposal, but I am not using any of them because I want to keep things calm," he told reporters. "I will not quit. If you want me out, do it by law, not by force. This is embarrassing in front of the world."
Nearly 300 Bangkok police officers were trapped inside the prime minister's compound, which was occupied by members of the PAD.
''It's like we are in prison. It has bought great shame on us that police have been detained by the protesters,'' a police sergeant-major told the Bangkok Post.
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Thailand's political crisis deepens amid protests
By
Polya Lesova, MarketWatch
Last update: 5:24 p.m. EDT Aug. 29, 2008
NEW YORK (MarketWatch) -- Thailand's political crisis deepened further Friday, as anti-government protests continued for a fourth day and the prime minister said he might impose a state of emergency.
Political turmoil is likely to weigh on investor sentiment toward Thailand's stocks and currency, which have posted declines this year.
In Bangkok on Friday, Thai police, using tear gas, dispersed several thousand anti-government protesters who were besieging city police headquarters, while Prime Minister Samak Sundaravej said he may declare a state of emergency if the crisis deteriorates further, the Associated Press reported.
The protesters, who are led by the People's Alliance for Democracy, demand the ouster of Samak and accuse him of being a puppet of Thaksin Shinawatra, the former prime minister who was ousted in a 2006 coup and faces several corruption cases, the AP reported.
PAD supporters also staged protests outside of Bangkok, disrupting parts of the railway and airline services, according to the AP.
Friday's escalation of tensions comes after widespread anti-government protests on Tuesday, since when PAD members have occupied Government House in Bangkok.
"It is extremely difficult to predict where and how this stand-off will play out over the next few days," said Kristina Kazmi, Asia analyst at Global Insight.
Although a new coup "does not seem an imminent risk, given the low support for the PAD among the population at large, the unrest does highlight that the political crisis that emerged in 2005 is far from over," Kazmi said in a research note.
After falling earlier in the session, the benchmark Stock Exchange of Thailand (SET) index closed up 0.2% to 684.44 points on Friday.
Thai stocks down 20% this year
Like most other emerging markets, Thai stocks are deeply in the red year-to-date. The SET index has fallen 20% this year. In comparison, the MSCI Emerging Markets Index has declined 23%.
In New York trading on Friday, the iShares MSCI Thailand Investable Market Index Fund (
THD:
Sponsored by:
<img class="pixelTracking" border="0" height="1" width="1">
TF 9.74, 0.00, 0.0%) edged up 0.1%.
"Investor confidence, which had been boosted by the country's return to democracy late last year, has been further shaken by the protests," Kazmi said. "The political crisis compounds the fears triggered by high inflation and global economic uncertainty."
The central bank raised its key interest rate by 25 basis points to 3.75% on Wednesday to curb inflationary pressures. July's consumer price inflation surged to 9.2% year-on-year, up from 8.9%.
The Thai economy grew at 5.3% year-on-year in the second quarter, a decline from 6.1% in the first quarter.
The U.S. dollar rose 0.5% against the Thai baht Friday. The greenback is up nearly 14% against the baht year-to-date.
"We don't think it [political tensions] will lead to another coup," said Meg Browne, a currency strategist at Brown Brothers Harriman & Co.
"It [politics] has some impact, but it's not the only thing that will have an effect on the baht," Browne said. "We're concerned about slowing growth. We think that will dampen demand for equities."
The baht will likely continue to weaken against the dollar, pressured by slowing economic growth and political uncertainty, Browne said.