Asian stock markets closed higher on Wednesday after Federal Reserve Chair Janet Yellen flagged a possible interest rate hike next month, keeping the dollar in pole position near three-week highs.

Japan's benchmark index, Nikkei 225 went up 199.00 points or 1.03 percent to settle at 19,437.98. China's benchmark index, Shanghai Composite fell 4.94 points or 0.15 percent to close at 3,212.99. Hong Kong's Hang Seng rose 291.86 points or 1.23 percent to end at 23,994.87.

Singapore's Straits Times rose 16.01 points or 0.52 percent to end at 3,088.48. South Korea's KOSPI rose 9.29 points or 0.45 percent to end at 2,083.86. Taiwan's TAIEX went up 80.98 points or 0.83 percent to end at 9,799.76.