- Forex: USD gapped higher across the board at the start of Monday's Asian session, with perception of greater willingness among global central banks to slash interest rates in the face of financial turmoil underscoring greenback demand. EURUSD punctured 1.37 handle, stopping just short of testing 1.36 figure, USDCHF has taken out 1.13 en route to 1.1380 session high before paring its gains, while GBP has also shed a full figure against USD before finding support at 1.76. Commodity FX majors CAD and AUD have lost further ground with weakness perpetuated by fears over export demand. Aussie Dollar looks particularly vulnerable ahead of Tuesday's RBA interest rate decision. Consensus estimates are calling for Aussie central bank to slash rates by as much as 50 bps. Japanese yen remains the lone exception to the greenback rally on further deleveraging benefiting funding currency with USDJPY falling over one big figure below 104. Yen strength is particularly accentuated in the crosses with fresh multi-month lows seen in EURJPY and GBPJPY. NZD lost further ground vs the dollar following NZ government announcement of widening budget deficit in 2009. Asian emerging market FX pairs - TWD, SGD, and HKD - are likewise selling off against USD on renewed risk aversion theme.

- Asian Equities: Asian stocks are lower across the board on risk aversion. The Nikkei 225 moved to a 4-year low and the index is declining by more than 3%, led by losses in shares of banks. The S&P ASX 200 is lower by more than 2.5% and trading near a 3 year low. Losses in Australia are being led by shares of miners and financials. In other equity indices, the Kospi is lower by more than 3.5%, the Shanghai Composite is declining by more than 3.5%, the Hang Seng is off by more than 2.5%, the Taiex is lower by more than 2.5% and the Straits Times is declining by close to 2.7%.

- Commodities: Crude oil prices are lower by more than 1.5% on concerns about slowing global growth and the stronger USD. Spot Gold is higher by more than 0.25% on safe haven demand, but gold's upside has been limited by the stronger USD. In other metals trading, Shanghai gold, copper and zinc are all lower by their daily limits.