Asia report: Markets mixed as focus shifts from red dragon to orange man

Markets in Asia finished the week mixed, as investors looked towards the inauguration of US President-elect Donald Trump, and reacted to a relatively positive release of economic data from China.

In Japan, the Nikkei 225 bobbed above and below the waterline for much of the session, before settling up 0.34% at 19,137.91.

Electronics conglomerate Panasonic saw its stock rise 1.26% after it confirmed it was extending its partnership with electric car manufacturer Tesla, beyond the current battery deal and into the autonomous driving space.

Brewing giant Kirin Holdings was up 1.28% after reports emerged from Brazil that Kirin was looking to sell its beer operations in the country to Heineken.

The yen busted back from its recent strength against the greenback, and was last 0.3% weaker at JPY 115.20 per $1.

On the mainland, the Shanghai Composite finished up 0.69% at 3,122.83, while the Shenzhen Composite ended 1.52% higher at 1,885.8.

China’s economy reportedly grew 6.8% year-on-year in the fourth quarter, which was slightly ahead of expectations.

The growth likely came as a result of higher government spending and surges in bank lending in recent months.

For the 2016 calendar year, the red dragon expanded 6.7% year-on-year, with industrial output jumping 6% and fixed asset investments 8.1% firmer.

Retail sales leapt 10.9% during the year.

South Korea;s Kospi finished down 0.35% at 2,065.61, while Hong Kong’s Hang Seng Index was down 0.71% at 22,885.91.

The markets were keeping one eye on Washington DC as they went to bed, where Trump was set to outline his presidency and possibly some of his executive moves in his inauguration speech on Friday US time.

“If Trump emphasizes protectionist trade policies, then that could see some unwinding of the Trump rally,” read a Friday note from National Australia Bank.

“On the other hand, if he focuses on making 'America again' through infrastructure spending then it is likely the market will react positively.”

Oil prices were higher as Asia handed the trading baton to Europe, with Brent crude last up 1.08% at $54.75, and West Texas Intermediate adding 1.18% to $52.74.

Australia’s S&P/ASX 200 was off 0.66% to 5,654.75, with the hefty financial and materials subindexes dragging the benchmark down.

Biotechnology firm CSL bucked the trend in Sydney, however, to close up 2.78%, after it announced it was lifting its forecast for full-year profit to between 18% and 20%.

It was much the same story across the Tasman Sea, with the S&P/NZX 50 edging 0.2% lower to 7,048.48, with thin trading the theme of the day for New Zealand’s markets.

Crude processor NZ Refining led the benchmark lower, losing 4%, while fuel retailer Z Energy declined 0.4%.

Both of the down under dollars were weaker, with the Aussie last off 0.48% at AUD 1.3288 and the Kiwi weakening 0.63% to NZD 1.3996 per $1.