Thai stock market welcomes Thaksin victory

Mr Thaksin's election victory has been welcomed by Thailand's stock market, which opened more than two percent higher.

It continued to rise in morning trading, with companies linked to Mr Thaksin, a former telecommunications tycoon, sharply higher.

The Thai baht also rose sharply in early trading.

Analysts said the banking sector was performing strongly; one of Mr Thaksin's campaign pledges was for a national asset management company to take over their bad loans.

It's a plan that has been criticised by analysts concerned about mounting public debt.

They've also expressed concern about his promise to give thousands of dollars to each of Thailand's villages.

Correspondents say Mr Thaksin's campaign capitalised on public dissatisfaction at the slow pace of economic recovery under the government of Chuan Leek-pai.

From the newsroom of the BBC World Service