BANGKOK (AP) – Asian shares and U.S. futures experienced an upward trajectory on Wednesday, spurred by a significant surge in Wall Street benchmarks fueled by investor optimism surrounding a potential interest rate cut by the Federal Reserve. Major indices like the S&P 500 rose to 6,765.88, with the Dow Jones Industrial Average rallying to 47,112.45, and the Nasdaq composite climbing to 23,025.59.

Tokyo's Nikkei 225 index rose by 2% to close at 49,650.77, benefiting from a broad rally that encompassed major exporters and technology shares. Similarly, South Korea's Kospi made a notable gain of 2.1%, reaching 3,940.15, largely supported by an impressive 2.3% rise in Samsung Electronics, the leading heavyweight in the market. In contrast, Chinese markets experienced more subdued growth. Hong Kong's Hang Seng rose by 0.5% to 26,013.33, while the Shanghai Composite index slightly increased by 0.1% to 3,875.48.

In the Chinese e-commerce sector, shares of Alibaba faced a downturn, falling by 1.1%. The company's U.S.-traded shares also fell by 2.3% on Tuesday after reporting a quarterly profit that fell short of projections. However, it did announce revenue figures that exceeded analysts' expectations during the same period.

In the Asia-Pacific region, Australia's S&P/ASX 200 climbed 0.9%, closing at 8,615.30, while New Zealand's S&P/NZX 50 gained 0.7% following a decision by the central bank to cut its Official Cash Rate to 2.25% from 2.5%.

The anticipation of interest rate cuts has significantly influenced market sentiment, particularly toward smaller companies that often rely on borrowing to finance their growth. The Russell 2000 index of the smallest U.S. stocks surged by 2.1%, surpassing other market indices.

Mixed economic reports have led traders to speculate on a near 83% probability that the Federal Reserve will implement rate cuts in December, according to data from CME Group. Recent data indicated that U.S. retail shopping activity in September was weaker than economists had projected, and consumer confidence took a larger-than-expected dip in November. These indicators suggest a need for economic support through lower interest rates.

Lower interest rates are expected to stimulate the economy by encouraging both households and businesses to increase borrowing, as well as prompting investors to pay higher prices for investments. Despite concerns about inflation caused by lower interest rates, where inflation at the wholesale level revealed slightly worse figures in September than anticipated, the underlying trend showed some improvement.

Later in the day, the U.S. was set to release additional data that had been delayed due to a six-week-long government shutdown. This comes in light of the Fed's earlier decisions to cut rates twice this year in an effort to stabilize the slowing job market.

The retail sector saw a notable uplift with several companies reporting better-than-expected profits for the summer quarter. Abercrombie & Fitch shares soared by 37.5% following their profit announcement, while Kohl's experienced an impressive rise of 42.5% after reporting a profit when analysts had anticipated a loss. Best Buy also noted a 5.3% increase after raising its profit forecast for the full year, citing robust performance across computing, gaming, and mobile segments.

In other segments of the market, U.S. benchmark crude oil gained by 24 cents, reaching $58.19 per barrel, while Brent crude increased by 26 cents to $62.06 per barrel. Currency rates reflected a mild fluctuation as the U.S. dollar dipped to 156.03 yen from 156.06, while the euro appreciated to $1.1587 from $1.1569.

Overall, the market's positive momentum indicates a potential shift in investor sentiment as the economic landscape continues to evolve amid fluctuating data on consumer activity and inflationary pressures.