South Korean stocks rose for a third consecutive session on Thursday, and the won also strengthened against the U.S. dollar, after second-quarter economic growth came in above expectations, fueled by booming semiconductor exports, as well as large spending plans announced by U.S. technology companies.

The benchmark KOSPI index rose by 206.54 points, or 3.04 percent, to 7,004.24 points as of 02:06 GMT, achieving gains of over 7 percent over the last three sessions, although it is still down about 23 percent from its record high set on June 22.

The won also rose to 1,467.6 against the dollar, its highest level since May 11, while in offshore trading it reached 1,468 won per dollar, up 0.6 percent.

Data showed that South Korea's economy, the fourth-largest in Asia, grew 0.6 percent in the April-June period compared to the previous quarter after seasonal adjustment, exceeding the 0.4 percent growth forecast in a Reuters poll.

Despite a slowdown from the 1.8 percent growth recorded in the first quarter, the performance reflects continued strength in the electronic chip sector in supporting the economy, coinciding with the Bank of Korea beginning a monetary tightening cycle this month.

Krystal Tan, Asia economist at ANZ Bank, said: 'The stronger-than-expected Q2 growth data reinforces the likelihood of the Bank of Korea raising interest rates again in August.'

She added: 'Economic activity remains resilient, while high energy prices pose upside risks to inflation, which tilts the balance towards a rate hike next month.'

Technology stocks led the gains, with SK Hynix rising as much as 6.5 percent, Samsung Electronics gaining about 4.8 percent, and LG Energy Solution rising about 4 percent.

Also, the financial results of Alphabet and Tesla boosted expectations of continued strong spending on artificial intelligence infrastructure, which supports demand for advanced chips and memory chips used in data centers, benefiting Asian suppliers.

In other sectors, Hyundai Motor rose 3.6 percent, Kia rose 1.9 percent, Posco Holdings gained 4 percent, and Samsung Biologics rose 2.1 percent.

Of the 913 stocks traded, shares of 796 companies rose, while 90 fell. Foreign investors recorded net purchases worth 1.06 trillion won ($722.1 million).

In the bond market, three-year Korean treasury bond futures rose 0.01 point to 102.71, while the yield on three-year government bonds fell 0.7 basis points to 3.909 percent, and the yield on benchmark 10-year bonds rose 2.4 basis points to 4.378 percent.

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