Credit crisis, border clash to hit Thai shares

BANGKOK, Oct 16 (Reuters) - Thai shares are expected to drop on Thursday, hit by by fears of a global recession that led to a plunge on Wall Street overnight and fighting on Thailand's border with Cambodia, analysts said.

Many Asian markets fell more than 6 percent in early trade after U.S. stocks had their worst day since the 1987 crash as weak economic data fed the pessimistic mood, and shares in economic bellwether companies underperformed the market.

At home, Thai and Cambodian military commanders prepared for talks across their disputed border after the most serious clash in years left two Cambodian soldiers dead and 10 Thais in Cambodian hands.

'The developments on all the things that have happened lately have just been unbelievable. Now, with rising tension across the border with Cambodia, this is going to further depress sentiment -- as if the global fears weren't enough,' BFIT Securities analyst Anupon Sriarj said.

Resistance on the benchmark SET index was expected at 500 and support at 450, Anupon said.

On Wednesday, the main index ended down 3.85 percent at 481.50, dragged down by losses in energy index heavyweights <.SETEN>, led by PTT, which fell 4.7 percent.