Investors around the world are closely watching markets as Donald Trump appears to be on the cusp of winning back the White House in the US presidential race.

The main stock indexes across Asia were mostly higher on Wednesday, while the US dollar was also up.

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

According to a projection from the BBC’s US partner CBS, the Republican Party is set to take control of the Senate but there are still votes left to count.

In Japan, the benchmark Nikkei 225 stock index ended the session up by 2.6%, while Australia’s ASX 200 closed 0.8% higher.

In mainland China, the Shanghai Composite Index was flat, while Hong Kong’s Hang Seng was down by around 2.5%.

The major US stock indexes also appeared to be set to open sharply higher. That came after the Dow Jones Industrial Average, S&P 500 and Nasdaq all closed more than 1% higher on Tuesday.

The world’s largest cryptocurrency, Bitcoin, also jumped to a record high of more than $75,000 (£58,145).

The US dollar was up by more than 1.5% against a basket of other major currencies, including the euro, pound and the Japanese yen.

Tesla’s Frankfurt-listed shares rallied over 14% at the open on Wednesday. Elon Musk, Tesla’s top shareholder, has supported Trump throughout his electoral campaign.

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

“Trump’s global trade policies are causing particular angst in Asia, given the strong protectionist platform on which more aggressive tariffs on imports into the US have been pledged,” said Katrina Ell, director of economic research at Moody’s Analytics.

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.

Meanwhile, Trump’s tax-cutting agenda has also been broadly welcomed by big American companies.

“If Trump gets elected, we should see pro business policies and tax cuts, in turn possibly driving up inflation and less rate cuts,” said Jun Bei Liu, portfolio manager at Tribeca Investment Partners.

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

“Harris’ platform largely assumes the status quo regarding global trade flows and tariffs,” said Ms Ell.

A potential Harris administration is also seen as more likely to tighten regulations on industries like banking and healthcare.

The Democratic party’s renewable energy policies could also boost electric vehicle companies and solar firms.

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.