Thailand's markets swooned as the health of the country's beloved king took a turn for the worse, and the importance of the monarchy means more turmoil might be in store.
"The king is an important factor in the credibility of the coup leaders and the stability of Thailand through the transition," said Tony Nash, global vice president at Delta Economics. "Markets know that if the king's health falters, then questions will be raised about coup leaders, the prime minister and his government."
The SET dropped 1.7 percent on Monday after news emerged over the weekend that the king had been admitted to the hospital with a high fever. After palace officials said his condition was improving following an operation to remove his gallbladder, shares wavered between positive and negative territory on Tuesday.
King Bhumibol Adulyadej has headed Thailand's constitutional monarchy for over 60 years, but the 86-year-old's health is failing. While he is revered across the country, his son, the crown prince, is less popular. The Crown Prince, Maha Vajiralongkorn, has a reputation as a big-spending playboy.