Asian stocks ticked up on Wednesday taking its cue from a jump on Wall Street; the dollar held on to its gains on the back of an uptake in Treasury yields. Major indexes in Australia and Japan all tacked on more than 2 percent, while South Korea finished nearly 1.9 percent higher.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 2 percent while Shanghai stocks edged up 0.8 percent and Australian shares rallied 2.2 percent. Crude oil prices bouncing from multi-year lows buoyed energy-related shares. Japan’s Nikkei surged 2.5 percent, rebounding from a two-month low struck the previous day.

As far as commodities, oil prices saw some rebound despite lingering concerns of oversupply in the market. West Texas Intermediate (WTI) futures fell by 24 cents, or 0.64 percent, to $37.11 a barrel in Asian trade after rising 2.86 percent in U.S. trading hours. The internationally traded Brent fell 19 cents, or 0.49 percent, at $38.26 a barrel in Asia trade after tacking on 1.29 percent in U.S. trade.

Rate Hike Already Integrated

Analysts believe the overnight rally in U.S. and Europe is an indication that markets are fully pricing in the expected Federal Reserve interest rate hike which should be announced at Wednesday’s meeting at the close of its two-day policy setting meeting. The hike would be the first U.S. rate hike in nearly a decade.

According to Martin King, co-managing director at Tyton Capital Advisors, “A lot of capital will be looking for a temporary home outside of the U.S. so as to avoid the likely increase in volatility after the hammer falls. And in the context of our current world markets, for many Japan looks like a credible home.”