Asian stock markets are trading higher on Wednesday as Wall Street set record highs overnight after Federal Reserve Chair Janet Yellen spoke in support of an interest rate hike next month, while the dollar hovered near three-week highs.

Japan's benchmark index, Nikkei 225 went up 226.25 points or 1.18 percent to trade at 19,465.23. China's benchmark index, Shanghai Composite gained 8.62 points or 0.27 percent to trade at 3,226.55. Hong Kong's Hang Seng rose 258.46 points or 1.09 percent to trade at 23,961.47.

Singapore's Straits Times rose 15.18 points or 0.49 percent to trade at 3,087.65. South Korea's KOSPI rose 5.53 points or 0.27 percent to trade at 2,080.10. Taiwan's TAIEX went up 45.79 points or 0.47 percent to trade at 9,764.57.