Korean carriers spike on heavy trading

Korean Airlines and Asiana Airlines shares spiked yesterday on better investor confidence, as Korea's benchmark Kospi rose 1.67%, reflecting improved US sentiment. Shares in Korean Air rose 6.6%, while Asiana Airlines rocketed up 11.5%, with both stocks hitting their highest points since 21-Feb-2011.

As market sentiment eased this morning, both stocks have dropped. Over the first two hours of trading on the Korea Stock Exchange, Korean Air shares dropped 3.2% and Asiana Airlines shares were down 5.2%.

Markets in Japan, Australia, Indonesia and the Philippines closed higher yesterday, but markets in Hong Kong, Shanghai, Taipei, Singapore, Kuala Lumpur and Bangkok were closed for trading due to the Labor Day holiday.