Japan's Ministry of Internal Affairs and Communications released its inflation data on late Thursday evening. Japan's national consumer price index (CPI) declined to an annual rate of 0.2% in December from 0.3% in November, in line with expectations.

The slower increase was mainly driven by declines in fuel, light and water charges, and transportation and communication prices.

Japan's national CPI excluding fresh food remained unchanged at an annual rate of 0.1% in December, in line with expectations.

The Bank of Japan's inflation target is 2%.

Household spending in Japan fell 4.4% year-on-year in December, missing expectations of a 2.4% drop, after a 2.9% decline in November.