The overnight gains on the Wall Street have boosted the market sentiment on Asian bourses ahead of the US Federal Reserve's meeting. The trading on Wednesday registered positive momentum in equities across the Asian markets.

The US dollar held to large gains as Treasury yields started moving up. The two-day meeting of US Federal Reserve ends later Wednesday. Dow Jones rose 0.9 percent and S&P 500 index gained 1.1 percent. Bank stocks led the gains on the Wall Street.

All eyes are glued to the outcome of US Fed meeting later today. If the Fed hiked rate, it'll be for the first time in a decade.

If the interest rate is hiked, it'll be considered as the beginning of an end to an expansionary monetary policy as it curtails down the near-zero interest rate regime. Recovering from the two-month low level, Japan's Nikkei rose 2.5 percent. 

According to a report by Reuters, spread betters witnessed upbeat momentum in Asian equities. MSCI index of Asia-Pacific shares outside Japan rose two percent. Shanghai stocks marginally up 0.8 percent.

Australian shares gained over two percent. Crude oil prices bouncing from multi-year lows as fresh buying recorded in energy stocks.

The market analysts said that short-dated T-bills, the commercial papers, the government collateralized (GC) weekly repo rate and the one-week LIBOR rate had all moved in unison by rapidly shifting their rates higher.

Evan Lucas, a market strategist at spread better 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 6 am AEDT tomorrow."

CNBC reports says that the tally in the US and Europe indicates markets are fully pricing in the predicted interest rate hike by the US Federal Reserve. 

The possible hike in interest rate by US Fed boosted buying interest in banking stocks on the Wall Street. The anticipation of over one year about the hike in interest rate is more than done for the market. Now, investors are looking to the US Fed on how it'll propel the tightening cycle in 2016. 

The recovery in oil prices and short covering rally ahead of the US Fed meeting have boosted the stocks on Asian bourses, observes FX Street.

The US central bank may hike 0.25 bps interest rate for the first time in the decade. The renewed confidence among investors aided the recovery in Asian stocks. 

Sean Callow, a senior strategist at Westpac, said: "The Fed Chair Janet Yellen should stress data-dependence in following up with further tightening next year and will surely not drop any heavy hints about the timing of the next move. No one can be confident how the dollar will emerge from all this but volatility seems assured."