China markets rebound after softer-then-expected deflation, Japan extends record-breaking rally

Chinese markets rebounded on Friday after softer-than-expected deflation data for December. The country’s consumer price index fell 0.3%, lower than anticipated. Japan’s markets continued their rally, with the Nikkei and Topix hitting their highest levels since 1990. The Nikkei rose 1.06%, while the Topix was up 0.18%. In Australia, the S&P/ASX 200 slipped marginally, and South Korea’s Kospi inched down 0.14%. In the US, all three major indexes ended close to the flat line despite higher-than-expected inflation in December. Oil prices rose after the US and UK conducted military strikes in Yemen. Goldman Sachs highlighted opportunities in the Asian tech hardware industry, while BofA identified potential outperformers as rates fall.