By Kwanwoo Jun
Korean Air Lines shares rose sharply, leading a broad rally in South Korean airline stocks amid hopes that the won's strength could help reduce their cost burden.
The won hit a six-month intraday high against the dollar early Wednesday. A stronger won helps ease operating costs for South Korean carriers, which pay for jet-fuel purchases, maintenance fees, aircraft leases and other major business expenses in the U.S. currency.
Korean Air's stock advanced as much as 9.3% in early trading, putting it on course for its biggest daily gain in more than four years.
Shares of most other local carriers were also higher, with Asiana Airlines climbing 4.8% and budget airline Jin Air 6.8% higher, outperforming the benchmark Kospi's 0.4% gain.
The won strengthened sharply against the dollar in Seoul onshore trading Wednesday as foreign-exchange trading resumed after a two-day holiday break in South Korea, catching up with the gains made by some Asian currencies amid signs of a possible thaw in global trade tensions.
The U.S. dollar recently changed hands at 1,393.50 won in Seoul, the currency pair's lowest level since November.
Officials from the U.S. and China are set to meet in Switzerland later this week to address tensions between the world's two biggest economies over sweeping tariffs.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
May 06, 2025 23:34 ET (03:34 GMT)
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