* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Bangkok stocks hit lowest since April 16
* Manila stocks hit near six-week high
* Taiwan dollar set for best day in 4 months
By Shashwat Awasthi
Oct 19 (Reuters) - Thai shares sank to a six-month low on Monday as escalating
anti-government protests threatened to trigger an even deeper sell-off in equities and heaped
further pressure on the region's worst performing stock market this year.
Protests demanding the resignation of Prime Minister Prayuth Chan-ocha and curbs on powers
of the monarchy have compounded Thailand's woes in recent months after the COVID-19 pandemic
ravaged its tourism-reliant economy. Bangkok stocks .SETI , which have lost more than 23% so far this year, slid as much as 2.1%
to their lowest since April 16 and endured their worst day since June.
"It's quite a surprise to me to see such heavy sell-off this morning," said Poon
Panichpibool, a market strategist at Krung Thai Bank.
"In the short term, I think investors (local and foreign) will reduce their exposures to
Thai equities, which could lead to deeper market correction," he said, warning of a deeper
sell-off if investors began to expect a prolonged political turmoil.
Thailand has already suffered a record $8.8 billion in equity outflows over the first nine
months of this year, exchange data shows.
Prakash Sakpal, senior Asia economist at Dutch bank ING, also highlighted risks to Thai
assets from the uncertainty.
"History shows how ugly such political outbursts in Thailand could get... As such, I think
risky Thai assets might be a no-go zone until the political dust clears," Sakpal said.
Philippine stocks .PSI soared more than 2% after the lower parliamentary house on Friday
approved the 2021 budget, which the government hopes will underpin recovery from a pandemic-led
downturn. Timely passage of the budget had been threatened recently by a leadership row among
Philippine lawmakers, and Jennifer Lomboy, a fixed income fund manager at First Metro Asset
Management, said the approval lowered the probability of a re-enacted budget.
Most other emerging Asian stock markets rose as investors pinned their hopes on the prospect
of a fresh U.S. fiscal stimulus deal and took comfort from data that showed China's economic
recovery accelerated in the third quarter. Stocks in Malaysia .KLSE , also dampened by political uncertainty in recent weeks, rose as
much as 0.7% after three straight sessions of losses.
Currencies in the region largely traded in narrow ranges as investors awaited signs of
progress on a U.S. stimulus deal before making firmer bets, though Taiwan's dollar TWD=TP
continued to be an outlier and firmed 0.8%.
HIGHLIGHTS:
** Malaysia's 10-year benchmark yield up 8.70 basis points at 2.599%
** Top losers on Thailand's SETI include Samui Buri Property Fund SBPFu.BK , down 14.37%,
Thai-German Products TGPRO.BK , down 14.29% and Apex Development APEX.BK , down 12.5%
** In the Philippines, top index gainers are GT Capital Holdings GTCAP.PS , up 5.58%,
Jollibee Foods JFC.PS , up 5.17%, and JG Summit Holdings JGS.PS , up 4.69%
Asia stock indexes and currencies at 0656 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= +0.02 +3.07 .N225 1.11 0.06
China CNY=CFXS -0.02 +3.92 .SSEC -0.81 8.50
India INR=IN +0.04 -2.77 .NSEI 0.69 -2.67
Indonesia IDR= -0.20 -5.58 .JKSE 0.24 -18.79
Malaysia MYR= +0.02 -1.35 .KLSE 0.58 -4.80
Philippines PHP= -0.01 +4.08 .PSI 2.05 -22.98
S.Korea KRW=KFTC +0.47 +1.26 .KS11 0.22 6.78
Singapore SGD= +0.04 -0.95 .STI 0.42 -21.08
Taiwan TWD=TP +0.89 +4.81 .TWII 1.24 7.60
Thailand THB=TH -0.06 -4.17 .SETI -1.84 -23.35