From his Vietnamese Coast Guard boat at night, Lt. Colonel Phan Duy Cuong can see the yellow lights of an oil rig 10 nautical miles away. Owned by a Chinese company, it sits in waters near islands claimed by both nations in the South China Sea.
Thailand’s prolonged political crisis is raising the risk that the nation will be the only one of Southeast Asia’s biggest economies to slide into a recession this year, undermining its allure as a manufacturing center.
Central banks in Indonesia and India, with the worst-performing currencies among Asian emerging markets this year, will face more challenges in 2013 as they balance inflation risks with the need to boost growth.
Thailand’s baht rose, erasing its losses since a May 22 coup, as an end to seven months of street protests and a planned pickup in government spending help attract overseas funds to the nation’s assets.
Malaysia’s ringgit dropped by the most in two weeks after an inflation report in the U.S. heightened speculation the Federal Reserve will raise interest rates, potentially drawing money away from emerging markets.