After a subdued start, China’s Shanghai Composite Index rose sharply in a late-day swing Wednesday, recovering from the previous day's losses. The benchmark index briefly rose 5.9 percent, before closing up 4.9 percent.

Other Asian stock markets also rose, tracking gains from the overnight rally on Wall Street. India’s S&P BSE Sensex advanced to a two-week high and was trading up 1 percent, while Japan’s Nikkei 225 closed up 0.8 percent. South Korea’s Kospi Composite Index, meanwhile, finished the day’s trade at a one-month high, rising nearly 2 percent.

Bernard Aw, market strategist at U.K.-based trading firm IG Group, told the BBC that the markets were positioning themselves for an expected rate hike Thursday by the U.S. Federal Reserve. If the central bank does decide to hike interest rates, it would be the first such move in nearly a decade.

“[The] conditions are right for a move and we believe the Fed will raise rates by 25 basis points,” Zal Devitre, head of investments at Citibank Singapore, told CNBC.

According to Reuters, the late-day swing on the Shanghai index marked its best one-day gain since Aug. 27. The smaller Shenzhen Composite Index also rocketed up 6.5 percent, recovering from the steep sell-off seen in previous sessions.

“While there is no specific evidence, it follows the pattern involving state-backed buying which sees the markets surging around 1 or 2pm local time,” Daniel So, a strategist at CMB International Securities, told CNBC. 

Meanwhile, after ending the previous day’s trade with decisive gains, European stocks also opened higher Wednesday. The pan-European STOXX 600 was up more than 1 percent at the open, while London’s FTSE 100 was trading 0.7 percent higher. Germany’s DAX and France’s CAC 40 were both trading up 1.3 percent.