Asian markets fell as financial fears send banks lower with China snapped its long-running rally. Bank of East Asia, which leads off the results season finished higher despite a worse-than-expected second-half net loss of HKD 746 million and slashed its dividend to HKD 0.02 per share from HKD 1.18 per share, after selling a debt portfolio at a steep loss. The Hang Seng declined more than 3% to close at 12,945.4 yesterday.
The technical outlook of Hang Seng is negative. The index opened gap down and fell below its 20 day SMA. It extended its loss and fell below the 13,000 support at closing. If the index falls below the next support at 12,439, it may head further south. If it is able to sustain above the 12,439, it may continue to range trade between 12,439 to 12,400.