Overseas Trading: Volatility Ramps Up as Japan Takes a Hit

It was another volatile day of trading in Asia, with most of the action resolving to the downside. Hong Kong's Hang Seng swallowed the heftiest losses -- shedding 2.6% -- while China's Shanghai Composite dropped 1.4%, following a wider-than-expected drop in the country's producer price index (PPI). Speaking at the World Economic Forum today, China's Premier Li Keqiang said the mainland remains on pace to achieve its 7% growth target for 2015, and dispelled concerns about a "hard landing" for the economy.

All eyes were on Japan's Nikkei, though, which moved sharply lower in the wake of Wednesday's eyebrow-raising rally. Specifically, the index surrendered 2.5%, thanks to a disappointing reading on core machinery orders. South Korea's Kospi, meanwhile, bucked the regional bearish trend -- tacking on 1.4%, amid a jump in shipbuilders.

European benchmarks are wallowing in the red at midday, pressured by dreary economic data out of Asia. Elsewhere, traders are digesting the latest decision from the Bank of England, which chose to stand pat on its current monetary policy. Against this backdrop, London's FTSE 100 is down 1.3%, the French CAC 40 is off 1.2%, and the German DAX is lingering about 1% below breakeven.