South Korean stocks rallied for the third session in a row to regain the 1,900-point threshold on Thursday on growing expectations that a U.S. interest rate hike could come later than expected, analysts said. The local currency gained ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index jumped 13.91 points, or 0.73 percent, to 1,908, extending its winning streak to a third straight session. Trading volume was moderate at 476.2 million shares worth 6.6 trillion won ($5.57 billion), with gainers far outnumbering losers 527 to 301.

"As the U.S. stock market rebounded sharply last night, the global financial markets stabilized," said Bae Sung-young, an analyst at Hyundai Securities Co.

The Dow Jones industrial average soared 3.95 percent on Wednesday, the largest daily gain in seven years, on rising hopes that the U.S. Federal Reserve may delay its interest rate hike due to the faltering Chinese economy and turbulence in the global financial markets.

The Chinese index edged up in late afternoon trade, snapping a five-session losing streak.

The analyst said the Chinese central bank has demonstrated that it is doing its best to revive the economy by cutting the key rate on Wednesday.

Big caps led the bullish move, with chipmaker SK hynix soaring 6.13 percent to 35,500 won and Cheil Industries jumping 6.8 percent to 15,700 won.

No. 1 cosmetics maker Amore Pacific rose 5.26 percent to 380,000 won and runner-up LG Household & Healthcare gained 6.09 percent to 836,000 won.

Utilities firms also finished in positive territory, with No. 1 player KEPCO adding 0.71 percent to 49,500 won and the Korea Gas Corp. rising 3.45 percent to 39,000 won.

Tech firms remained dull. Tech giant Samsung Electronics finished flat at 1,067,000 won and LG Electronics fell 0.35 percent to 43,300 won.

The local currency closed at 1,185.2 won against the U.S. dollar, up 0.75 won from Wednesday's close, climbing for the third straight session. (Yonhap)