Carmakers led the rally in Japan, where the Nikkei Stock Average surged 3.5% to its highest level in a year.

The U.S. dollar strengthened against the Swiss franc and euro but weakened versus the yen on Wednesday as positive sentiment from a new U.S. trade deal was offset by political uncertainty surrounding Japanese Prime Minister Shigeru Ishiba's future.

Markets rallied as the U.S. moved closer to trade deals with Japan and the EU, bringing much-certainty after months of President Trump’s volatile tariff threats. The S&P 500 hit a new record and futures are up prior to the opening bell.