Prime Minister Abhisit Vejjajiva said his government could resist ongoing concern regarding weakening European public finances which had tumbled European and US stocks as well as oil and other commodities on Friday.

“Many people may believe that the sharp declines are negative,” Mr Abhisit said, “but I look at them in a different way. It should be positive as each country has mapped out measures to resolve (their) financial institution [difficulties].”

He said his government is not reckless as it already had explained the situation to domestic and overseas investors, saying that it would be able to “counter the problem.”

“Capital and equity markets overseas grew at high rates last year and consolidation should thus be considered as normal,” said Mr Abhisit.

Thai stocks declined 1.58 per cent on Friday’s closing at 691.41 points on moderate trading of Bt16.24 billion following overnight losses on Wall Street. The Thai baht also weakened against the US dollar, closing at Bt33.20-33.24 compared with Bt33.09-33.14 on Thursday.