Asian Market Update: Financials in Japan Rise on Fresh Rumors of BOJ Banking Infusion; Bernanke Reaches Out to Press at "extraordinary time" on "60 Minutes", Says Depression was Averted while Justifying Bailout Efforts; Crude Plummets on OPEC Decision Against Additional Cuts; Swissy Remains Under Pressure

- Asian equity bourses traded firmly to the upside, tracking a strong finish in last week's final US session and bolstered by a new development in Japan's financial sector. Nikkei Press speculated that the BOJ may be looking to buy subordinated bonds and loans issued by banks so as to boost their operating capital ratios. The details of the plan were rumored to be determined by the end of March - the final month of Japan's fiscal year - and would enable banks to offset losses incurred by writedowns on their balance sheet holdings. Nikkei's banking and financial names were higher across the board, with Mizuho, Mitsubishi UFJ, and Sumitomo Mitsui rallying by 5.6%, 6.2%, and 7% respectively in late trading while placing Nikkei's 2% rally at the helm of regional advancers. In Korea, the Kospi traded as high as +1%, but pared those gains toward unchanged levels amid South Korea Press speculation that Finance Minister Yoon has requested to expand the current $30B currency swap between the two countries. The 0.2% rally in Australia's S&P/ASX index was also notably more subdued, even as Australia's banking names were bid higher. Front-month S&P futures for the US indicated a weaker open on Monday, falling 0.7% in modest profit-taking from last week's extraordinary gains.

- US Fed Chairman Bernanke appeared on nationally broadcasted CBS "60 minutes" feature in what was billed as a pronounced deviation from central bankers traditionally avoiding interviews with the press. Bernanke justified the decision by "the extraordinary times" of the economy, wishing to bridge the perceived gap between Wall Street and Main Street. Fed Chairman noted that the unemployment outlook remained severe but declined to comment on whether he saw the jobless rate climbing into double digits. Instead, he called for continued federal involvement, pinning the greatest risk to be in "the absence of political will to relieve crisis." Although ambivalent about the public bailing out the likes of AIG in lieu of their disastrously misplaced bets, Bernanke said there was no choice but to act in order to stabilize the financial system without which an economic recovery could not take place.
Portrayed as a scholar of the Great Depression, Bernanke suggested that the biggest lesson of the Great Depression was that the Fed let banks fails and sharply contracted the money supply, turning a recession into a much more pronounced downturn. Because of all the monetary and fiscal measures, the Fed Chairman said the US had averted an economic depression, forecasting a recovery beginning some time in 2010.

- In other notable economic data, South Korea's export price index came in slightly above the prior levels, rising 22.9% on a yearly basis from 18.6% in January and also rising 4.8% on a monthly basis vs the prior month's 3.4% decline. According to an unconfirmed report from a South Korean official, 2009 exports growth was estimated to range between flat to negative 5%. On company-specific front, Australia's Foreign Investment Review Board has complicated the outlook for Rio Tinto's deal with Chinalco, extending the transaction review period by 90 days amid fresh rumors that Rio shareholders remain deeply concerned about the announced partnership. The delay comes in spite of the Chinalco efforts to smooth over concerns regarding its role in ore pricing and the recent outlook from Rio CEO Albanese that the institutional investor backlash has subsided.

- In currencies, European majors traded mixed against the greenback, with the Euro ranging between 1.2830 and 1.2920 after a modestly weaker open, Sterling trading firmly above 1.40 toward the intraday high of 1.4070 seen in the prior session, and the Swiss Franc trading weaker from the get-go, shedding over 50 pips from last week's closing levels above 1.19 in USD/CHF. The Swissy was also weaker on a relative basis against EUR and GBP, extending its post-SNB intervention announcement freefall. Japanese Yen rose toward 97.50 vs USD at the open, but sold off to a session low of 98.50, before technically-driven buying interest pushed the Yen higher. In commodity FX, Australian Dollar ranged around 0.6530-80 in subdued volatility, while USD/CAD was sharply higher around 6pmET - with the open of trading in front month crude contracts that saw prices plunge 5% - before paring those gains. NZD/USD was also technically constrained by prior session's peak just below 0.5270's, even as Commitment of Traders data revealed commercials moving to multi-year high positioning long levels in NZD contracts.

- Crude oil prices are lower by more than 3% and at the time of writing trading below $45.00/bbl.
Today's decline in oil prices is being driven by OPEC's decision to leave its production unchanged.
Calls to cut production by some members of OPEC where voted down in favor of having the cartel improve compliance with its already announced production quotas. Saudi Arabia's oil minister was quoted as saying that “we'd like to see compliance as high as possible.” Additionally, there were some concerns among OPEC members that higher oil prices could hurt an already weakened global economy. Spot Gold prices are lower by more than 0.30%, as shares of most Asian financial companies are moving higher. In terms of gold demand, the SPDR Gold Trust ETF continues to increase its holdings of the metal, as it raised its bullion holdings by 15.3 tons to a new record of 1,056 tons as of March 15.