Asia report: Surging dollar sees many markets retreat

Markets in Asia finished mixed on Friday, with a surging US dollar hurting many local bourses and putting the kibosh on demand for assets in the region’s emerging markets.

In Japan, the Nikkei 225 was up 0.18% at 17,374.79, paring back some of its earlier gains of more than 1%.

The yen broke its four-day run of weakness against the dollar, and was last 0.37% stronger on the greenback at JPY 106.43 per $1.

Markets in the mainland didn’t show any signs of the same weakness seen elsewhere in Asia, with the Shanghai Composite adding 0.78% to 3,195.88, and the Shenzhen Composite up 0.53% at 2,108.03.

China's total social financing fell significantly in October to CNY 896.3bn, from CNY 1.72trn in September, according to fresh data from the People’s Bank of China

Total social financing is a measure that includes off-balance sheet figures from outside conventional bank lending, including trust company loans, initial public offers and bond sales.

South Korea’s Kospi was 0.91% lower at 1,984.43, as the Bank of Korea stood pat on record-low interest rates of 1.25%, while in Hong Kong the Hang Seng Index lost 1.35% to settle at 22,531.09.

“Instead of mourning, investors cheered a Trump victory as they hoped he will be positive for the economy," said BK Asset Management managing director of foreign exchange strategy Kathy Lien.

“He ran on a campaign of aggressive spending and this is the first time in eight years that there's prospect of a sizable fiscal stimulus package.”

Oil prices were lower during Asian trading, with Brent crude last down 0.24% at $45.73 per barrel and West Texas Intermediate losing 0.65% to $44.37.

Australia’s S&P/ASX 200 was up 0.79% to 5,370.74.

The sunburnt country’s major miners were higher, with BHP Billiton up 2.13%, Fortescue Metals adding 4.49% and Rio Tinto 2.44% higher.

In New Zealand, the S&P/NZX 50 was off 0.5% at 6,697.79, led lower by healthcare software developer Orion, which fell 6.7%.

The down under dollars were both weaker against the US dollar, with the Kiwi last 0.3% behind at NZD 1.3904 per $1, and the Aussie 0.34% weaker at AUD 1.3179 to the greenback.