market-complacency-over-north-korea-could-be-dangerous

Market complacency over North Korea could be dangerous

A guest opinion piece by North Korea expert and Barclays Capital's economist, Dominique Dwor-FrTcaut.
October 12, 2006
North KoreaÆs alleged nuclear test registered more strongly on seismographs than on Asian markets. The South Korean equity market softened, the won weakened some and KoreaÆs credit default swaps spreads, a measure of credit risk, widened. But just days after the nuclear test the markets had retraced most of their losses. And South Korean chaebols are not expecting the test to have a negative impact on their bottom lines. Rather, they are looking forward to stronger export competitiveness thanks to the weakening of the won brought about by the nuclear test.

Almost four years after North KoreaÆs covert uranium programme has been exposed, markets have become blasT with the countryÆs belligerent antics. But complacency could...
¬ Haymarket Media Limited. All rights reserved.

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