The threat of a looming trade war has brought uncertainty into the Thai stock market, an executive at the Stock Exchange of Thailand said Friday.
"At the moment, the uncertainty on the rules and regulations certainly play a very big role in the activities in the stock market," Pakorn Peetathawatchai, the chief strategy and finance offer of the Stock Exchange of Thailand said. That all explains "a lot of overreaction and maybe the estimation of the effect" of the new trade regulations, he added.
Spiking tariffs worldwide would hurt the countries and companies that rely heavily on exports, Peetathawatchai said, pointing out that the export proportion of the Thai economy is very high, ranging from 60 percent to 70 percent. He mentioned, however, that direct exports into the U.S. currently only account for about 10 percent of the country's total exports.