Following on from a weak Europe and US session (despite late-day heroics in China last night), Fed confusion and commodity-complex counterparty-risk-concerns have sparked further turmoil across AsiaPac in the early going. Noble Group (asia's Glencore) is crashing, down 6.7% at the open. FX markets are seeing outflows send CNH below CNY for the first time since July and crush Thai Baht to its weakest since Jan 2007. Equity markets are in trouble with Aussie stocks hammered (driven by a plunge in Miners) and Nikkei 225 down 1000 points from Friday's highs. Asia credit markets have spiked to 2-year wides. China injected another CNY40bn and strengthened the fix (by the most since 9/2) for 2nd day in a row. FX markets are turmoiling across the board with Thai Baht at its weakest sicne Jan 2007... Japanese stocks are plunging as the last leg of support for Abe's government fades into the abyss of suicidal monetary policy... The Nikkei 225 just broke Black Monday's lows and is trading back to January lows Japan's VIX is surging once again - back above 33. In other Japanese news, Daiichi Chuo KK, a firms that was USD2.5 billion markets cap in 2008 and operates specialized carriers, oil tankers, and coastal shipments, is halted and expected to file bankruptcy today... so much for devaluing your currency by 40% to export growth... Aussie stocks are in freefall as Aussie Miners get mauled... And Asia's Glencore, just as we warned... If you like GLEN CDS, you will love NOBLE http://t.co/itRvATiSFf — zerohedge (@zerohedge) https://twitter.com/zerohedge/status/648562333359439872!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); Is getting hammered... *NOBLE GROUP SLUMPS 11%, HEADING FOR LOWEST CLOSE SINCE 2008 And bonds have crashed... *NOBLE 6.75% 2020 BONDS DOWN 15PTS TO RECORD LOW OF 65 * * * Credit risk is surging... Chinese markets are in serious turmoil also...it appears serious amounts of USDollars are being dumped as.... *OFFSHORE YUAN STRONGER THAN ONSHORE SPOT FIRST TIME SINCE JULY *OFFSHORE YUAN TRADES STRONGER THAN MONDAY'S ONSHORE CLOSE and Chinese stocks are weaker... *FTSE CHINA A50 OCTOBER FUTURES DROP 2.2% IN SINGAPORE *CHINA'S CSI 300 STOCK-INDEX FUTURES FALL 1.3% TO 3,108.2 But this is the real problem in our view that is building up major tension... The PBOC is clearly suppressing interbnak rates "dead" even as defgault risk soars (systemically) - just as we saw with CNY "suppression" this cannot last forever and will blow at some point. PBOC strengthens Yuan fix for 2nd day... *CHINA SETS YUAN REFERENCE RATE AT 6.3660 AGAINST U.S. DOLLAR PBOC injects another 40bn... *PBOC TO INJECT 40B YUAN WITH 14-DAY REVERSE REPOS: TRADER But never to worry... *CHINA WILL REMAIN GLOBAL GROWTH ENGINE: PEOPLE'S DAILY The propaganda is heavy tonight. Charts: Bloomberg