Asian markets opened higher on Wednesday, tracking Christmas holiday gains on Wall Street, with investors betting on the US Federal Reserve cutting interest rates as early as March.

Markets in Japan, Australia and Hong Kong all rose, with bourses in the latter two reopening after the Christmas trading break.

Market sentiment has been largely positive since the Fed's last meeting, when it indicated the rate-hike cycle could be nearing its end, with inflation beginning to slow. 

Global markets were also positively affected by the so-called "Santa Claus rally", which has historically seen stocks tick higher — albeit at thinner volumes — during the end-of-year holiday period. 

"Since '69, the S&P has averaged a 1.3 percent gain in the Santa Rally, and with the market up so much this year, punctuated with an 8-week winning streak, there are not many sellers willing to book taxable gains to avoid a weak possibility of a correction," said investor Louis Navellier in a note.

Still, the main focus for investors will remain US interest rates, whose rate-hike cycle has driven market activity ever since it began last year.

"The bets for a March Fed cut continue to grow, helping to propel stocks higher," said Navellier. 

"Interest rates are essentially flat, and the US dollar index continues to fall."

On Tuesday, Wall Street stocks continued their positive momentum, with the Dow and broad-based S&P 500 both rising 0.4 percent, while the tech-rich Nasdaq Composite Index climbed 0.5 percent. 

Bucking the rising trend, however, was Apple, whose share price dipped 0.3 percent after a US ban on some of its smartwatch models came into effect, a byproduct of a patent dispute.

The ban stems from a complaint made to the International Trade Commission in mid-2021 accusing Apple of infringing on medical device maker company Masimo Corp's "light-based oximetry functionality".

Currency markets saw few changes on Wednesday morning, with the euro and British pound almost unchanged against the dollar. 

The yen was also steady, standing at 142.70 to the dollar, compared with 142.34 yen in New York trading.