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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.