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Asia-Pacific markets were set for a higher open Wednesday as investors awaited the Federal Reserve’s interest rate decision, widely believed to bring a second straight 25 basis point cut.

Markets are assigning a nearly 100% probability that another quarter-point reduction, on the heels of September’s cut, would bring the federal funds rate to a range between 3.75%-4.00%.

“If [Fed chair Jerome Powell] comes off dovish, bets for future Fed cuts will increase and provide more fuel to market 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 banks charge each other for overnight loans. While it doesn’t directly affect consumers, the Fed’s moves often influence borrowing costs for mortgages, credit cards and other loans.

Japan’s Nikkei 225 futures pointed to a stronger open, with the contract in Chicago at 50,745 and its counterpart 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 the holidays.

Overnight in the U.S., all three major averages closed higher. The S&P 500 rose 0.23% to close at 6,890.89. It had surpassed the 6,900 level for the first time on an intraday basis earlier in the day.

The Nasdaq Composite advanced 0.80% to finish at 23,827.49, while the Dow Jones Industrial Average gained 161.78 points, or 0.34%, to settle at 47,706.37. In addition to their closing highs, the tech-heavy Nasdaq and 30-stock Dow scored new all-time intraday highs alongside the broad market S&P 500.

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

South Korea’s SK Hynix, one of the world’s largest memory chipmakers, on Wednesday posted record quarterly revenue and profit, boosted by a strong demand for its high bandwidth memory used in generative AI chipsets.

Here are SK Hynix’s third-quarter results versus LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate:

• Revenue: 24.45 trillion won ($17.13 billion) vs. 24.73 trillion won
• Operating profit: 11.38 trillion won vs. 11.39 trillion won

Revenue rose about 39% in the September quarter compared with the same period a year earlier, while operating profit surged 62%, year on year.

On a quarter-on-quarter basis, revenue was up 10%, while operating profit grew 24%.

SK Hynix makes memory chips that are used to store data and can be found in everything from servers to consumer devices such as smartphones and laptops.

The company has benefited from a boom in artificial intelligence as a key supplier of high-bandwidth memory or HBM chips used to power AI data center servers. 

“As demand across the memory segment has soared due to customers’ expanding investments in AI infrastructure, SK Hynix once again surpassed the record-high performance of the previous quarter due to increased sales of high value-added products,” SK Hynix said in its earnings release. 

HBM falls into the broader category of dynamic random access memory, or DRAM — a type of semiconductor memory used to store data and program code that can be found in PCs, workstations and servers.

SK Hynix has set itself apart in the DRAM market by getting an early lead in HBM and establishing itself as the main supplier to the world’s leading AI chip designer, Nvidia. 

However, its main competitors, U.S.-based Micron and South Korean-based tech giant Samsung, have been working to catch up in the space.

“With the innovation of AI technology, the memory market has shifted to a new paradigm and demand has begun to spread to all product areas,” SK Hynix Chief Financial Officer Kim Woohyun said in the earnings release.

“We will continue to strengthen our AI memory leadership by responding to customer demand through market-leading products and differentiated technological capabilities,” he added.

The HBM market is expected to continue to boom over the next few years to around $43 billion by 2027, giving strong earnings leverage to memory manufacturers such as SK Hynix, MS Hwang, research director at Counterpoint Research, told CNBC.

“[F]or SK Hynix to continue generating profits, it’ll be important for the company to maintain and enhance its competitive edge,” he added.