You will need an extra module for converting different string encodings. node-iconv seems to be one you are looking for! It is also mentained by the core developer of libuv/node so it should be quite sustainable. However think about updating the encoding on the database if possible as this may be the most lasting solution.
PS: With node-mysql it also should be possible to directly pipe the incoming data to a encoding stream (will probably not work but you get an idea):
var mysql = require('mysql');
var iconv = require('iconv');
var connection = mysql.createConnection({
host : 'localhost',
user : 'me',
password : 'secret'
});
connection.connect();
var query = connection.query('SELECT 1 + 1 AS solution')
var encoder = new iconv.Iconv('latin1', 'utf-8');
// will encode result and pipe it to your terminal
query.pipe(encoder.pipe(process.stdout));
EDIT:
Thomas made a good suggestion about setting the charset in node-mysql if updating the database is not an options. This also seems possible see here and should better than my hack. However if you are not using node-mysql this may be a workaround.