- Risk appetite returned to Asian markets after better-than-expected Black Friday sales suggested that U.S. consumer spending would remain solid towards the end of the year. ShopperTrak RCT Corp, tracking sales at about 50,000 U.S. retail outlets, reported that combined sales on Friday and Saturday rose 7.2% on a y/y basis, while total sales on Black Friday rose 8.3% y/y.

- The JPY initially weakened as risk appetite returned to Asian markets, but then made a strong recovery on news that China intends to invest a portion of its forex reserves in Japanese equities. Japan's benchmark Nikkei stock index climbed more than 2.0% on the news. A Chinese official told the Nikkei business daily that it would begin investing in Japanese shares "soon" without giving a firm time frame.

- The China Business daily reported that China's sovereign wealth fund (CIC) is to join Baosteel, Shougang Group and Angang Group to make a bid for Rio Tinto, adding that the group's offer could be valued around $200B. Rio Tinto's share price spiked up about 8% on the news, and managed to hang on to gains after CIC denied the press speculation. China's Steel Association added that it had not heard of plans to bid for Rio Tinto. Most analysts agree that regulatory issues make a CIC bid For Rio Tinto is unlikely.

- Latest news from credit markets: The Telegraph newspaper is reporting that two of Barclays' SIVs will be broken up and sold. The Sunday Express is reporting that UBS will post a Q4 debt write-down of over $5B (Note: CreditSights said earlier this month that UBS had taken a $9 billion loss on CDOs, but the bank has said it will write down the value of the debts only gradually). The FT is reporting that the UK's Schroders has cut the value of units in its £2B property unit trust by 12.5%. The Sunday Times is reporting that the UK's Paragon may receive a £280M cash injection from its backers.

- Equities: At 22:52 ET Japan's Nikkei is +1.88%, Australia ASX is +2.07%, South Korea's KOSPI +3.5% and the Shanghai Composite Index is +0.61%. The Nikkei traded higher on a strong start to the U.S. holiday shopping season and news that China's sovereign wealth fund will invest some of its funds in Japanese equities. Financials and exporters led the upside for the Nikkei, while resource stocls lifted the KOSPI. China's benchmark index managed to hold on to gains above the psychological 5,000 level, while Hong Kong's Hang Seng index traded higher as investors bought large-cap stocks.

- Commodities: Short covering by option-holders lifted spot gold by +0.29% between 18:00 ET and 23:06 ET (last quote at $827.20/oz), while crude oil gained 0.58% in the same time period to trade at $98.75/bbl. Crude oil has now gained for two consecutive days on speculation that OPEC won't increase production ahead of peak winter demand.

(by Eben Esterhuizen and Gavin Pierce)