Overseas Trading: Stocks Slip as China Data Continues to Underwhelm

Tokyo stocks once again set the pace for a dismal session in Asia, with exporters crumbling as the yen vaulted higher against the U.S. dollar. Over in China, traders considered another round of uninspiring economic data, with the consumer price index (CPI) rising by less than expected last month, and wholesale prices logging their 43rd consecutive monthly drop. By the close, Japan's Nikkei shed 1.9%, China's Shanghai Composite fell 0.9%, Hong Kong's Hang Seng lost 0.7%, and South Korea's Kospi slipped 0.5%.

European markets are also trading lower at midday, taking their cues from Wall Street's lackluster Tuesday finish and a downbeat Asian session. Luxury retailers are among the notable laggards, with names like Burberry and Salvatore Ferragamo pressured by concerns over waning Chinese demand. Meanwhile, on the economic front, traders are weighing an upbeat reading on British employment against tumbling consumer prices in France and Spain. At last check, London's FTSE 100 is down 0.6%, the German DAX is off 0.5%, and France's CAC 40 is sitting on a 0.3% deficit.