Nikkei 225, Nifty 50, CSI 300

Asia-Pacific markets are poised for a higher open on Wednesday as investors await the Fed’s interest rate decision, which is believed to bring a second consecutive 25 basis point cut.

Markets have an almost 100% chance that another quarter-point cut, following September’s rate cut, would bring the federal funds rate to the 3.75%-4.00% range.

“If [Fed chair Jerome Powell] “If a dovish tone emerges, bets on future Fed cuts will increase, allowing the market to gain momentum,” veteran investor Louis Navellier wrote in a daily note.

The federal funds rate, set by the Federal Open Market Committee, is the interest rate that banks charge each other for overnight loans. While it doesn’t directly affect consumers, the Fed’s moves often affect borrowing costs for mortgages, credit cards and other loans.

of japan Nikkei 225 Futures pointed to a stronger open with the contract in Chicago at 50,745 and the contract in Osaka at 50,660 compared to the previous close of 50,219.18.

Australia’s S&P/ASX 200 started the day flat.

Hong Kong markets are closed for holidays.

Overnight in the US, all three major averages closed with increases. The S&P 500 index closed at 6,890.89 points, with an increase of 0.23 percent. Earlier in the day, it had exceeded the 6,900 level for the first time on an intraday basis.

The Nasdaq Composite index closed at 23,827.49 points, up 0.80 percent, and the Dow Jones Industrial Average closed at 47,706.37 points, up 161.78 points or 0.34 percent. In addition to the closing highs, the tech-heavy Nasdaq and 30-stock Dow also set new all-time intraday records, as well as the broad S&P 500.

—CNBC’s Jeff Cox, Sean Conlon and Pia Singh contributed to this report.