Japan's Ministry of Internal Affairs and Communications released its inflation data on late Wednesday evening. Household spending in Japan plunged 5.3% year-on-year in March, missing expectations of a 4.2% decline, after a 1.2% rise in February.

The drop was mainly driven by decreases in spending on clothing and footwear, and transport and communication.

Spending on clothing and footwear plunged 12.2% in real terms year-on-year in March, while spending on transport and communication slid 12.1%.