The dollar continued to make gains in very early Asian trading, except against the JPY with the JPY cross correlation to stock market moves still largely intact and driving market flows. AUD, EUR, NZD, GBP and CAD hit lows in early Asia in reaction to the 70+ decline in the DJIA and large losses in Asian stocks as the Nikkei dropped over 10% in morning trading. And then a strange flow emerged, with both AUD & NZD rising sharply with reports of Japanese AUD-JPY and NZD-JPY trade as well central bank intervention rumors, and talk of Asian central bank demand which morphed into reports of an Asian central bank lifting its AUD and NZD weightings in its basket. The AUD & NZD gains fueled broad-based JPY cross buying and stop-loss buying on USD-JPY as a result. USD-JPY rallied from 99.26 lows to 100.43 before settling around 100.10/20. EUR-USD rallied from 1.3424 lows to 1.3518 before slumping sharply 1.3379 in the afternoon in the wake of a sharp USD-CHF rally on the back of the news that Swiss Finance Ministry was moving to bolster Switzerland's financial system, including taken on $60 bln worth of bad debts from UBS. Oil prices fell over $1 on the back of global recession concerns. U.S. treasury yields fell as stocks remained under pressure. Asian stocks remained weak with Australia and Hong Kong down about 7% and the Nikkei down over 9%, helping to cap the JPY crosses.