Bhumibol, whose reign witnessed regular bouts of political turmoil, coups and violent unrest, was revered as a serene and caring father of the nation, and a bulwark in troubled times.
His death Thursday at the age of 88, with Thailand under a military dictatorship, could cause fresh political tensions and economic hardship, analysts warned as his people come to terms with losing the only monarch most have ever known.
UN chief Ban Ki-moon hailed the king's "long dedication to his country and his legacy as a unifying national leader... respected internationally".
"The Secretary-General expresses his hope that Thailand will continue to honour King Bhumibol's legacy of commitment to universal values and respect for human rights," his spokesman said in a statement.
President Barack Obama praised the monarch as a "close friend" and partner of the United States.
He paid tribute to the king as a "tireless champion" for Thailand's development, praising his "unflagging devotion" to improving the lives of his subjects.
"I had the honor of calling on His Majesty the King during my visit to Thailand in 2012, and recall his grace and warmth, as well as his deep affection and compassion for the Thai people," he said.
Backed by an intense palace-driven personality cult, Bhumibol was revered as semi-divine by many in Thailand, and a towering leader above the din of the kingdom's fractious political scene.
In his heydey he built a reputation as a people's monarch, criss-crossing the nation to visit the rural poor and sometimes intervening to quell political violence -- although he approved most of the army's many coups during his reign.
'Greatly missed'
Neighbouring Singapore and Malaysia both expressed their sorrow at his passing, with the island city-state describing the king as "an outstanding and deeply revered monarch... (who) worked tirelessly for the betterment of the Thai people".
President Vladimir Putin sent a telegram of condolence, saying that "during the decades of his reign he won the sincere love of his subjects and high prestige abroad".
British Prime Minister Theresa May said Bhumibol "guided the Kingdom of Thailand with dignity, dedication and vision throughout his life. He will be greatly missed".
Chinese President Xi Jinping hailed Bhumibol's contribution to Thailand's development, adding that the "good relationship" between Bangkok and Beijing were due in no small part to "personal efforts made by King Bhumibol himself".
Bhumibol's "rural development projects improved the lives of millions of people in Thailand" and will be remembered for generations to come, said EU President Donald Tusk and European Commission chief Jean-Claude Juncker.
Indian Prime Minister Narendra Modi tweeted: "People of India and I join the people of Thailand in grieving the loss of one of the tallest leaders of our times, King Bhumibol Adulyadej".
As concern mounted over the Bhumibol's health in the days prior to his death, the stock market and baht currency tumbled. And analysts predict further jitters ahead.
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Thailand's King Bhumibol dies aged 88
"The death of Thailand’s highly revered king will plunge the country into a state of mourning, and also deep political uncertainty," forecasters Capital Economics said in a note.
"The period of (relative) political calm since the 2014 coup has helped the economy recover... But renewed political instability could quickly derail this recovery."
"Although the King has been unwell for a number of years and has had little or no influence on day-today policymaking for some time, he has continued to act as a unifying force in the country."
Advisory group Bower Group Asia said all eyes would now be on the succession. The junta leader said Thursday that the named heir, Crown Prince Maha Vajiralongkorn, has asked for time before being officially proclaimed the next monarch.
"During the mourning and transition period, the military will retain a firm grip over the country to ensure that the royal succession proceeds smoothly and does not become politicised," it said.
Thailand's King Bhumibol. Source: AAP
Thailand declares government holiday but stock market to stay open
Thailand's cabinet declared a government holiday on Friday for mourning King Bhumibol Adulyadej, who died the previous day, a cabinet spokeswoman told Reuters.
The Stock Exchange of Thailand however said it and other financial institutions would be operating as normal. The stock market opens at 10 am local time.
Impact of Thai king's death on economy
Thailand's stock market and currency were shaken as long-ailing King Bhumibol Adulyadej's health worsened this week.
Now, after his death on Thursday at age 88, the outlook remains murky.
Here's what to watch for.
Share prices
- Thai stocks slid after the Royal Palace announced that Bhumibol's condition was unstable, the first time it had used that phrase regarding the king's health.
- On Wednesday the benchmark fell nearly 7 percent but ended down 4.1 percent. The market could be roiled by a sell-off of assets by palace officials or other members of the political elite.
Thai baht
- Thailand's currency was trading at 35.69 baht to the U.S. dollar on Thursday. It fell 1.1 percent on Wednesday and 0.2 percent on Thursday.
- But such gyrations do not compare with the loss in the baht's value caused by speculative attacks that triggered a region-wide financial crisis in 1997.
Economy on edge
- Bhumibol was a constitutional monarch with no formal political role, but was regarded as a unifying figure amid Thailand's perennial political turmoil.
- Many analysts expect the country to remain calm, as Thais focus on mourning. Few are likely to want trouble with the military junta.
- But there is concern over the succession, since the king's son, Crown Prince Vajiralongkorn, has not earned the same respect as his father.
Politics
- Concern over the royal succession has been entwined with Thailand's political turmoil in the past decade, as royalists sought to ensure that they control the process instead of certain politicians whose fealty to the monarchy they doubt.
- In a report, the Eurasia Group said his passing would lead a general election scheduled for 2017 to be pushed back to 2018.
- The overall impact on the business environment, it said, would likely be limited to a 100-day period of mourning that would follow his death.
Uncertainties
- While most analysts expect Thailand's transition to be a stable one, the country remains prone to political upheavals, with affluent urban centers and poorer rural areas.
- The military has overthrown civilian, democratically elected governments twice in the past decade, though the situation has been relatively calm since the last coup in 2014.
- Another spate of protests could hurt the tourism sector, which accounts for a tenth of economic growth.
- In the longer term, past upheavals already have damaged the country's competitiveness as infrastructure projects stalled and investors held back, wary of uncertainty.
"The lack of investment is undermining the economy's future productive capacity," Krystal Tan and Gareth Leather of Capital Economics wrote in a recent report. "The bottom line is that it is difficult to be upbeat about Thailand's medium-term outlook until the political picture becomes clearer."
