Nopporn Wong-Anan
Map locating the Thai parliament where police have fired tear gas at protesters in Bangkok. Anti-government protests left at least one dead and hundreds injured as troops were deployed across Bangkok to quell the demonstrations (AFP/Graphic).
BANGKOK (Reuters) -- Protesters seeking to topple the Thai government threatened more demonstrations in the capital on Wednesday, a day after two people died and over 400 were injured in the worst street violence in 16 years.
Prime Minister Somchai Wongsawat briefed Southeast Asian ambassadors on the deepening political crisis, telling them the government was "confident that it can take care of the situation," a diplomat at the meeting told Reuters.
The long-running campaign and recent violence have hurt investor confidence and distracted policymakers when they should be focused on slowing economic growth and the fallout from the global credit crisis, analysts say.
Leaders of the People's Alliance for Democracy (PAD) vowed to press on with the four-month street campaign.
"We can't stand this government with blood on its hands. More people will hit the streets to oust this government," Sirichai Maingam, a leader of the People's Alliance for Democracy (PAD), told TV 3 television.
The streets around parliament were quiet after the military deployed unarmed troops overnight to help police restore order.
One man was killed by a car bomb on Tuesday and a female protester died in the clashes, which saw riot police fire volleys of teargas and stun grenades at the crowds. Demonstrators fought back with stones, clubs and pistol shots.
At least two policemen were shot and one stabbed.
PAD radio broadcasts urged supporters in the provinces to join the street campaign, which began in late May.
The PAD is an extra-parliamentary coalition of businessmen, academics and activists who see Prime Minister Somchai Wongsawat as a puppet of Thaksin Shinawatra, his brother-in-law, who was deposed in a coup in 2006 and has fled to exile in London to escape graft charges.
FOREIGNERS DUMP SHARES
"The marked escalation in violence now further threatens the business climate, tourist receipts, capital flows, the stock market and the baht," JPMorgan Chase said in a research note.
Foreign investors offloaded Thai shares worth a net 804 million baht on Tuesday, bringing total net selling to 129.7 billion ($3.8 billion) this year. By comparison, daily stock market turnover in October has averaged just 11.4 billion baht.
The main stock index was down more than 4 percent but was performing no worse than other regional stock exchanges buffeted by the global credit crisis.
Tuesday's violence appalled many Thais, including one Thai Airways pilot who refused to let a government member of parliament board his plane for a domestic flight, radio reported.
The Bangkok Post carried a picture supplement, blurring out bits of photos showing demonstrators who had parts of their legs or feet blown off by exploding gas canisters.
The Post's front page headline read "Brink of anarchy."
The Nation's headline was"Bloodbath in Bangkok." In an editorial it berated Somchai's government for abandoning "its reconciliatory posture" and appealed for dialogue.
"Using force as the government did will only worsen the current standoff. If Somchai is not true to his own promises, then he should resign," the Nation newspaper said.
Somchai, who has preached national reconciliation but failed to engage the PAD in a meaningful dialogue, has refused to go.
(Writing by Alan Raybould; Editing by Darren Schuettler)
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