Asian markets were a mixed bag on Friday after China's latest set of economic data suggest the economy is recovering, even as risk sentiment sours ahead of Donald Trump's inauguration.
China's economy grew 6.8 percent in the fourth-quarter from the previous year, slightly better-than-expected, on the back of government spending and record bank lending. For the full year of 2016 and in on-year terms, the economy expanded 6.7 percent as industrial output grew 6 percent, while fixed asset investments rose 8.1 percent, and retail sales jumped 10.9 percent.
Markets will also warily eye Trump's inauguration speech and potential executive actions on his first day.
"If Trump emphasizes protectionist trade policies, then that could see some unwinding of the Trump rally. On the other hand, if he focuses on making 'America again' through infrastructure spending then it is likely the market will react positively," said economists at National Australia Bank, in a note on Friday.
After the American businessman's surprise election victory in November, the dollar, treasury yields and U.S. shares rallied on expectations that a Trump administration would lead to lower tax rates, looser regulations in certain sectors and fiscal stimulus.
The dollar was weaker at 100.95 against a basket of currencies, slipping below the 101 handle after Federal Reserve chair Janet Yellen remarks that a delay in tightening monetary policy could drive up inflation and force the Fed to raise rates in response, which could send the economy in a tailspin.