Thai security forces surround "red shirt" leaders

BANGKOK (Reuters) - Thai security forces surrounded a hotel in Bangkok on Friday where anti-government protest leaders are staying and vowed decisive action if the "red shirts" attacked television stations.

Financial markets tumbled when they reopened after a three-day Thai New Year holiday because of the prospect of further clashes after 24 people were killed and over 800 injured last weekend in the worst political violence since 1992.

"As I am speaking, special forces are surrounding the SC Park Hotel where we believe the terrorists and their leaders are staying," Deputy Prime Minister Suthep Thaugsuban said on national TV.

The SC Park is owned by the family of former Prime Minister Thaksin Shinawatra who was ousted in an army coup in 2006 and is the de facto leader of the red shirts.

Prime Minister Abhisit Vejjajiva, who has been largely absent from the public eye, will appear on national television at 1 p.m. (0600 GMT), Suthep said.

"We will arrest and suppress the terrorists. We have set up special task forces hunting for the terrorists," Suthep said.

The protesters planned to march on television stations that they accuse of biased coverage later on Friday.

The government warning came after five days of peace in the capital and as thousands of protesters camped out in Bangkok's most affluent shopping centre, pledging to make it a "final battleground" with the security forces in their bid to oust Abhisit.

The red shirts want Abhisit to resign and call early elections. Finance Minister Korn Chatikavanij told Reuters he had no plans to do so as it would "be very negative for the country."

Thailand's stock market fell 1.55 percent by 0318 GMT.

BLEEDING ECONOMY

Thailand's tourism-dependent economy is "bleeding" according to a tour operator body, with occupancy rates less than a third of normal levels in Bangkok.

The red shirts stormed the compound of a satellite transmitting station last week to try to force the government to resume broadcast of their TV channel, which has been blocked on and off since a state of emergency was declared on April 7.

Suthep said security forces would "react decisively" to any attack on television stations.

The government also said it would crack down on people it believed to be financing the red shirts and issued summonses under emergency powers for 60 people to report to the military barracks where Abhisit has his emergency headquarters.

(Writing by David Chance; Editing by Alan Raybould and Sanjeev Miglani)

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