S.Korea won at 3-mth closing high; N.Korea ignored

* Won hits 3-mth closing high on stocks, N.Korea ignored

* Seen rising further on revived risk appetite

* Some traders expect technical correction (Updates to domestic close)

SEOUL, April 6 - The South Korean won hit a three-month closing high against the dollar on Monday, bolstered by a regional stock market rally and unfazed by Pyongyang's launch of a long-range rocket over the weekend.

The won <KRW=> is expected to rise further on hopes that the global economic downturn is nearing its bottom and as more investors are looking for riskier assets, although it may experience technical correction, they added.

"The (rocket) launch has been factored in the market. What is an issue from now on is degree of sanctions against the North, but if any sanction is not that serious, the won will maintain its bullish tone," said June Park, an economist at Woori Investment & Securities.

North Korea launched a rocket on Sunday, which flew over Japan before splashing down in the Pacific Ocean and analysts say was effectively a test of a ballistic missile designed to carry a warhead as far as the U.S. state of Alaska.

But the United Nations failed to agree on a response to the launch despite pressure from Washington and its allies for action, while regional powers weighed the extent of the new security threat. [ID:nSP425457]

The won rose 2.4 percent to 1,308.9/9.6 per dollar, the strongest close since Jan. 7 and up from Friday's domestic close <KRW=KFTC> of 1,340.5.

Signs that liquidity in the financial sector was improving also supported the currency.

Earlier, Woori Bank, South Korea's No.2 lender by assets, said it had borrowed a total of $300 million from JPMorgan Chase & Co <JPM.N> and Deutsche Bank AG <DBKGn.DE>. [ID:nSEO306288]

The country's commercial banks' attitude toward lending turned positive for the first time in two years in the second quarter, the central bank data showed, indicating a further thaw in the domestic credit crunch. [ID:nSEO256536]

Seoul shares <.KS11> ended up 1.1 percent as foreign investors bought a net 248.4 billion won worth of stocks in the main exchange.

Still, some market players said recent rises in the currency and stock markets were excessive and the won was ripe for a correction.

"The 1,300 (per dollar) will be a major resistance level. The recent rallies in Dow looked too steep, so we may see some corrective movements ahead," said Daniel Soh, a currency strategist at FORECAST Pte Ltd.

The won climbed 18.4 percent since March 6 when it hit an 11-year low against the dollar.

0600 GMT 0311 GMT prev close Won <KRW=> 1,308.9/9.6 1,314.0/5.6 1,340.5 Yen/won <JPYKRW=R> 12.9890/85 13.0371/496 13.4538/672 KOSPI <.KS11> 1,297.85 1,313.14 1,283.75