-TARP Update: According to reports, the US Senate has agreed to vote on the bank rescue plan tomorrow. The Senate's plan would increase federal deposit insurance limits and include several tax breaks. The WSJ noted that the addition of the provision to increase bank deposit insurance levels could help gain the 12 more votes needed for passage in the House, based on Monday's vote. The WSJ also noted that House Democrats oppose the Senate's version of the tax package. Following the report regarding the expected Senate vote, it was reported that the US House Republican leader had supported the revisions to the rescue plan and believed that it should be passed. However, CNBC's Gasparino later reported that some of the House Republicans were preparing an alternative to Paulson's bailout plan as the group does not favor the government taking a big role in markets. It should be noted that before the rescue measure failed to pass the House on Monday, the Republican House leader on Sunday urged members to support the plan.

-Economic Numbers: Japan's Q3 Tankan survey missed analysts expectations and the survey was highlighted by the decline in the large manufacturers index into negative territory for the first time in more than 5 yrs. Also, the Tankan's capex component was the lowest reading since Sept 2002.

-Forex: The EUR, CHF and GBP have rebounded against the USD, after the EUR had its biggest drop since 2001. The AUD is gaining against both the USD and JPY. The NZD is declining against the USD and JPY. With respect to the Asian currencies, USD/KRW is weaker by more than 1%, USD/SGD is flat and USD/TWD is weaker by more than 0.40%. According to one report some Asian USD overnight rates eased on today's session from the high levels seen yesterday. The JPY is firmer against the USD, EUR, and GBP, but marginally weaker against the CHF.

-Asian Equities: The Nikkei 225 is higher by more than 0.60%, but well off of the session's best levels. The leading gainers in Tokyo include financials and exporters. The S&P ASX 200 is higher by more than 2.5%, led by advances in shares of banks and BHP. In other Asian trading, the Kospi is declining by more than 1%, the Taiwan Taiex is higher by more than 0.15% and the Singapore Straits Times is slightly lower.

Commodities: Crude oil prices are higher by more than 1%%, while Spot Gold is gaining by more than 0.50%. Both commodities are tracking the weaker dollar.