Asian markets climbed on Wednesday, taking cues from a strong finish on Wall Street. Major indexes in Australia and Japan tacked on more than 2 percent, while South Korea finished nearly 1.9 percent higher.
Analysts believe the rally in U.S. and Europe overnight indicates markets are fully pricing in the expected Federal Reserve interest rate hike; the Fed's decision is due on Wednesday.
Evan Lucas, market strategist at spreadbetter IG, said, "bond and money markets capped off the night by completely pricing in the moves expected tonight by the Fed, settling themselves in-line with where the effective Fed funds rate will settle at 6am AEDT tomorrow."
He added, "short-dated T-Bills, the commercial papers complex, the government collateralized (GC) weekly repo rate and the one-week LIBOR rate have all moved in unison by rapidly shifting their respective rates higher."