Stocks and dollar rise as US election result in focus

Investors around the world are closely watching the US election for clues on who will become the next president of the world's biggest economy.

Benchmark stock indexes in Japan and Australia made gains on Wednesday morning, while the US dollar was higher against other major currencies.

The result of the election is expected to have a major impact on the global economy, especially in Asia.

It is uncertain whether the result of the election will be known during Asian trading hours, as counts in swing states could take days to be completed.

"Markets look in good spirits despite there being no clear signs yet of who will take the reigns of the White House," said Tim Waterer, chief market analyst at investment firm KCM Trade.

In Japan, the benchmark Nikkei 225 stock index was up by more than 1%, while Australia's ASX 200 0.9% higher.

In the US on Tuesday, the Dow Jones Industrial Average, S&P 500 and Nasdaq all closed more than 1% higher.

"We could yet see some fluctuations across markets today though, particularly by assets which could be affected most by the outcome, with the US dollar and Chinese stocks being prime examples," Mr Waterer said.

Donald Trump has said throughout the campaign that if he became the next US president he would dramatically increase trade tariffs, especially on China.

The former president's more isolationist stance on foreign policy has also raised questions about his willingness to defend Taiwan against potential aggression from China.

The self-ruling island is a major producer of computer chips, which are crucial to the technology that drives the global economy.

If Kamala Harris wins investors expect her trade and foreign policies to be a continuation of Joe Biden's more predicable approach.

Investors also have other key issues to focus on this week.

On Thursday, the US Federal Reserve is due to announce its latest decision on interest rates.

Comments from the head of the central bank, Jerome Powell, will be watched closely around the world.

On Friday, top Chinese officials are expected to unveil more details about Beijing's plans to tackle the slowdown of the world's second largest economy.