July 12, 2012 (Chinavestor) Gloomy global outlook coupled with no short term stimulus from the FED sank markets worldwide. The DJIA recovered from steep losses by the end of the trading day on Wednesday but the Hang Seng Index (INDEXHANGSENG:.HSI) was less fortunate. Hong Kong's main gauge fell 394.8 points or 2.1% in a broad decline. Stocks that fell outnumbered those that advanced eight to one among 42 components of the index. Chinese shipping companies led the decline as outlook for exports darkened. China Shipping Development (HKG:1138) fell 5.7%, the most among components of the Hang Seng Index (INDEXHANGSENG:.HSI). CSCL (HKG:2866) declined 3.6% as well. Falling oil prices hurt oil producers but upstream oil companies and airliners rose on lower oil costs. Sinopec (HKG:0386), Asia's largest refiner, rose 2.3% while Shanghai Petrochemical (HKG:0338) advanced 0.4%. China Eastern Airlines (HKG:0670) rose 1.6% and Air China (HKG:0753) stayed in the black for the day as well. Stocks were looking for direction in Shanghai. The Shanghai Composite Index (SHA:000001) rose 10.1 points or 0.5% by the end of the trading day as China's trade balance improved in June over last year. Chinese coal companies led the advance on the mainland. China Coal (SHA:601898) rose 4.7% while China Shenhua Energy (SHA:601088), the largest coal miner in China, advanced 3.3%.