Thailand’s financial markets were closed and British companies in Thailand were anxiously monitoring developments today following yesterday's military coup.

Regional stock markets wavered, though the political crisis was only one negative factor amid weakness on Wall Street on poor house building data and a profits warning from internet company Yahoo!.

The benchmark for Asia’s biggest market, Japan’s Nikkei 225, dropped 1 per cent to 15,718.67 points. Singapore’s Straight Times Index was down 0.8 per cent at 2,517.72.

The Korea Composite Stock price Index declined 0.6 per cent at 1,365.24 and Taiwan’s Weighted Price Index was flat at 6,879.49. The Thai baht fell against the dollar as markets reacted nervously to news of the coup, and the ratings agency Standard and Poor’s said the move risks paralyzing policymaking and undermining the investment climate.

Pridiyathorn Devakula, governor of the Bank of Thailand, said the incident would have only a short-term impact on the economy, which he predicted would grow by 4.5 per cent this year.

Tesco, the supermarket retailer, Boots, Marks & Spencer and Cadbury Schweppes, are among UK companies with operations in the country.

Thailand is Tesco’s third largest market in the world, after Korea and the UK, generating sales of just under £1 billion last year. The retailing giant has a 200-strong chain in the country and is planning to open a further 170 stores there this year.
A spokesman for Tesco said: "We are monitoring developments."

Boots has 100 stores in the country, which it said, employ mainly local people.

A spokesman for the company, said he expected "business as usual" today.

A spokesman for Cadbury Schweppes, which runs a small sales operation in the country, said: "Obviously we will be checking with our staff there in the morning."

According to Trade&Invest, the group which helps to promote British business interests abroad, the UK is the largest European investor in Thailand.
The UK is also the second largest European exporter, after Germany.

When players like Tesco first entered the market they were able to build up large market shares, taking custom from the existing domestic retail chains.
The market is deemed attractive in part because of the excellent reputation British goods enjoy in the country.

However, Thailand has recently fought back against the hypermarket invasion, threatning to impose restrictions on Tesco and other retailers if they do not voluntarily agree to put expansion plans on hold. The country wants to draw up regulations to protect small shopkeepers.

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