The Singapore market took a battering yesterday following a selldown on Wall Street overnight. Asian markets were not left unscathed, with Hong Kong's Hang Seng down 3.1 per cent, while the Shanghai Composite slumped 4.05 per cent.

The Straits Times Index fell sharply at the start of trading yesterday, but pared its losses to end 38.66 points, or 1.13 per cent, down at 3,377.24. It closed the week 152.13 points, or 4.3 per cent, lower.

Meanwhile, investors used to a one-directional market are being reminded by money managers that price swings are a regular feature of financial markets. Mr Luca Paolini, chief strategist at Pictet Asset Management in Hong Kong, urged investors not to get sidetracked by the resurgence of volatility.

US markets were on course for a rebound last night, with the Dow Jones rising 300 points at the open from Thursday's 1,000-point drop.

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