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Asian stocks made a positive start Wednesday following gains on Wall Street but lost momentum as factory gate prices in China fell for the first time in nearly two years.

Shares in Tokyo and Hong Kong rose at the open, with the United States bracing for a tense night of midterm election results.

But they dipped in mid-morning trade after official data showed the world's second-largest economy languishing under Beijing's strict zero-Covid policy.

Markets had climbed in New York and Europe on Tuesday as polls opened in crucial US elections that will shape the political fortunes of President Joe Biden.

Biden's Democrats are facing a gargantuan struggle to hang onto control of Congress, and a Republican victory could pave the way for a White House comeback bid by Donald Trump.

Such a result could also lead to political deadlock in Washington -- a prospect welcomed by investors  "as it prevents any significant shifts in policy," according to Scope Markets analyst James Hughes.

At the same time, market players are eying US inflation data due on Thursday, causing the dollar to retreat, said Edward Moya, senior market analyst at OANDA.

"The dollar got crushed today as a short-covering move accelerated as investors embraced risk appetite ahead of the midterm elections and Thursday's pivotal inflation report," he said in a note late Tuesday.

Tokyo was down 0.2 percent at the break, while Hong Kong lost 0.1 percent in morning trade, with Shanghai up 0.3 percent.