STI loses 3.2% in week on weakness in oil, Japanese and US stocks

JAPAN slashed its interest rates into negative territory and instead of the yen weakening and the stock market rising, the reverse has occurred - Japanese equities have collapsed and according to expert observers, the yen has perversely become a safe haven.

Meanwhile, oil has resumed its downtrend, Wall Street is worried about what China might do when it reopens next week and European banks are in the spotlight because of financial solvency worries.

Over in Europe, Sweden followed Japan by moving to negative interest rates, while in Korea, trading in small caps on Friday was suspended after the small cap index collapsed by more than 8 per cent.