UBS Turns Bullish on Won as Korea Suffers From Japan Syndrome

        0325 GMT [Dow Jones] UBS turns bullish on the Korean won, saying the currency could appreciate to 975 versus the dollar. "The current account surplus shows no signs of easing," says economist Duncan Wooldridge. "Capital is no longer flowing out of Korea at a rate that makes it easy for the central bank to manage the level of the currency unlike 2013." Wooldridge says Korea has started to suffer from the "Japan syndrome" -- high domestic debt and worsening demographics, which can cap import demand. A weaker won versus the yuan in the past few years has also tripled Korea's trade surplus with China -- a trend that is difficult to quickly reverse, says Wooldridge. The won was last trading at 1023.5 to a dollar.(jacky.wong@wsj.com; Twitter: @jackycwong)
        (END) Dow Jones Newswires

        May 07, 2014 23:25 ET (03:25 GMT)