- Summary of trade between 17:00 ET and 23:00 ET: It was a quiet Asian session, with traders remaining on the sidelines ahead of the Thanksgiving holiday in the U.S., a long weekend in Japan and elections in Australia. Default swaps trading showed that company bond risk climbed to a new record in Japan, as lingering credit concerns continue to weigh on stock markets. Japanese importers sold the JPY, and buying on the JPY crosses quickly reversed the USD's technical rebound in early morning trade. The USD index hit a new record low towards the end of the Asian morning, lifting gold prices above $800/oz. Commodity prices continue to look heavy as markets worry about the credit crunch's impact on global growth. There were no major economic releases.

- Forex: The USD index hit another record low and EUR/USD hit a new record high after U.S. Treasury Secretary Paulson told the Wall Street Journal that the number of potential U.S. home loan defaults will grow significantly in 2008. Analysts expected another round of carry trade reversal on the back of a weak opening on Asian stock markets, but Japanese importers stepped in to sell the JPY as stock markets managed to trim early losses. USD/JPY moved back above 109 and EUR/JPY moved back above 162. Between 17:00 ET and 23:07 ET: AUD/USD +0.82%, NZD/USD +0.76%, USD/JPY +0.61%, EUR/JPY +0.61%, AUD/CHF +0.84%, CHF/JPY +0.61%, USD/CAD -0.70%

- Equities: The Nikkei started the morning sharply lower, but rebounded to trade higher by 0.82% at 23:09 ET. Australia's ASX failed to rebound with conviction, trading lower by -0.56% (down for the third straight day). Shanghai's Composite Index is currently lower by -2.03%. Japanese financials were dragged down by weaker than expected earnings result from bellwether Mitsubishi UFJ, while energy shares traded lower after oil prices retreated from all-time highs above $99/bbl. Australia's major banks were mixed - Commonwealth Bank traded lower, while investors interpreted National Australia Bank's recent underperformance as a buying opportunity. Australia's biggest subprime victim, Rams Group, dropped more than 22% on concerns that the company would not be able to refinance two debt facilities by a February deadline. South Korea's KOSPI dipped below 1,800 for the first time in 3 months, but managed to trim losses as the afternoon progressed. Hong Kong's Hang Seng Index is +1.32% after reports suggested that China's plan for residents to trade Hong Kong stocks directly is still under discussion.

- Commodities: Nymex crude held steady in Asia after falling nearly a dollar in the New York session. Crude oil was quoted at $97.35 at 22:58 ET, after inventories data showed a big increase in crude stockpiles. Spot gold gained 0.89% between 18:00 ET and 23:00 ET, last quoted at 805.70/oz.

(by Eben Esterhuizen)