Gains on Wall Street lead to a rise in Asia-Pacific markets; yen intervention speculated.

• Large Japanese manufacturers reported higher levels of business optimism, while non-manufacturers experienced a decline in confidence, according to the Reuters Tankan survey.
• According to Reuters, the Bank of Japan intervened in the currency market last Thursday and Friday, spending a total of 6 trillion yen ($37.9 billion) over the two days.

On Wednesday, Asia-Pacific markets experienced growth following the record-breaking overnight close of the Dow Jones Industrial Average and S&P 500, as traders' optimism regarding interest rate cuts intensified.

The Topix rose 0.44% after the Reuters Tankan survey showed an increase in business optimism among large Japanese manufacturers, while Japan's rose only 0.23%.

While the manufacturing index increased from +6 to +11, non-manufacturer confidence decreased from +31 to +27.

Last Thursday and Friday, Japanese authorities likely intervened in the currency market, spending a total of 6 trillion yen ($37.9 billion) over the two days, according to Reuters.

The Canadian dollar fluctuated between 157.41 and 161.82 against the U.S. dollar last week.

The S&P/ASX 200 in Australia increased by 0.29%, falling short of its record high of 8,037.3 points by a mere point.

The small-cap Kosdaq in South Korea climbed 0.14%, while the country's stock market was trading near a flatline.

The HSI's last close of 17,727.98 was lower than Hong Kong's futures at 17,843.

Singapore's non-oil domestic exports data, which is expected to contract 1.2% compared to the previous year's 0.1% decline, will also be closely watched by investors.

The Dow blue-chip index increased by 1.85% and closed at 40,954.48, while the S&P 500 gained 0.64% to end the day at 5,667.20. The Nasdaq Composite also rose by 0.20%.

—CNBC's Pia Singh contributed to this report.