Asian stocks tumble after heavy sell-off on Wall Street

Japan's main Nikkei 225 index shed 3.4% to 9,329.75. South Korea lost 4.2%, while Australia slid 2.4%.On Thursday, shares in the US and Europe tumbled on fears about the strength of the US economic recovery and the eurozone debt crisis.Asian stock markets have slumped on Friday, extending a global equity sell-off after Wall Street had its worst day in more than two years.Analysts warned that global markets may remain volatile in the coming weeks."People were cautiously optimistic that we would get back on track in the second half of the year. But with the US recovery stalling and the possible repercussions for the global economy, stock markets have been under pressure for a while."The sell-off in global equities has hit investors hard.Over the past nine trading sessions, the US S&P 500 stock index has lost $1.37tn (£843.6bn) from its total market value.In Europe, the UK's FTSE has seen £160.9bn ($261bn) wiped off its market value. In Germany, the Dax has shed 85.5bn euros (£74.2bn; $120.5bn), with France's Cac losing 13.6bn euros."Fear is the major theme," David Cohen of Action Economics told the BBC in an interview.

Syria unrest: UN condemns government crackdown

It is the first clear condemnation issued by the Security Council, which includes longstanding allies of Syria such as Russia.The UN Security Council has condemned the Syrian government for a deadly crackdown on protesters.It comes as the Syrian army attacks Hama, a centre of opposition protest, with reports of much loss of life.It was adopted over the fears of some members that any action could lead to Libya-style intervention.Dozens of people are believed to have been killed in the action against Hama, with residents saying tanks have now shot their way into Assi (Orontes) Square, in the centre of the city of 800,000 people.Human rights groups say at least 140 people have been killed in the Syrian unrest since Sunday, mainly in Hama, adding to a civilian death toll believed to be more than 1,600 since March.In Wednesday's statement, the council says it "condemns the widespread violations of human rights and the use of force against civilians by the Syrian authorities".
European members of the 15-nation council had pushed for a strong resolution condemning the Syrian government and calling for a rights inquiry.The statement said those responsible for the violence should be held accountable.The BBC's correspondent at the UN in New York, Barbara Plett, says the statement is less than what the European states on the council would have liked, but more than might have been expected given the strong opposition from some members to saying anything on Syria.It also called for "an immediate end to all violence and urges all sides to act with utmost restraint, and to refrain from reprisals, including attacks against state institutions."The statement stressed that the only solution to the crisis was a Syrian-led political process, in effect ruling out outside intervention, says our UN correspondent.

US avoids default as Obama signs debt bill into law

The bill cleared its final hurdle in the Senate by 74 votes to 26.President Barack Obama has signed legislation to increase the US debt ceiling and avert a financial default after Congress voted in favour of a bipartisan compromise deal.It raises the debt limit by up to $2.4tn (£1.5tn) from $14.3tn, and makes savings of at least $2.1tn in 10 years.The deal was struck after negotiations between Republicans, Democrats and the White House went down to the wire.Without a deal to raise the debt ceiling, the US would have been unable to meet all its bills, the treasury department had warned.Speaking at the White House shortly after the decisive vote in the Senate, President Obama said it was "pretty likely that the uncertainty surrounding the raising of the debt ceiling for businesses and consumers has been unsettling".The bill's signing came roughly 10 hours before the expiry of a deadline for Washington to raise its borrowing limit."It's something we could have avoided entirely," he added.
He urged Congress to now look to boost the economy through measures to create jobs and increase consumer confidence.The president said more action was needed, saying it was impossible for the US to "close the deficit with just spending cuts"."We can't balance the budget on the backs of the very people who have borne the biggest brunt of this recession," President Obama said, reprising one of his key themes of recent weeks.

PM acting under secret 7-pt deal: NC

It seems the already troubled relation between the ruling and opposition parties is set worsen further following Monday´s cabinet reshuffle by Prime Minister Jhalanath Khanal.The main opposition Nepali Congress (NC), which had repeatedly warned the prime minister against the reshuffle and has been obstructing parliament, has said it will launch still more stringent protest. NC has alleged that Prime Minister Khanal is bent on reviving the controversial seven-point deal reached secretly between him and UCPN (Maoist) Chairman Pushpa Kamal Dahal hours before the formation of his government on February 
NC chief whip Laxman Ghimire alleged that the fresh bid by the prime minister to induct new Maoist ministers was tantamount to throwing away the five-point deal into the dustbin."We can no longer expect Prime Minister Khanal to deliver on peace and new statute. The prime minister is moving ahead on the path set out by the controversial seven-point deal," he said. "We will continue with the House obstruction until the five-point deal is implemented and the prime minister steps down," he further said. The NC has been obstructing the parliament for past several days to exert pressure on Prime Minister Khanal to step down immediately.
  Prime Minister Khanal had visited the residence of NC President Sushil Koirala on Sunday to court NC´s support for cabinet reshuffle. NC leaders said the fresh move of the prime minister only vitiates the environment of national consensus. "The move of the prime minister to administer oath of office and secrecy to new Maoist ministers is an attempt to revive the controversial seven-point deal," said NC leader Ramesh Lekhak.
     Among other things, Prime Minister and UML Chairman Khanal and UCPN (Maoist) Chairman Pushpa Kamal Dahal in the ´secret´ deal had agreed to lead the government by turns. NC has grown suspicious as the Maoist leaders have been publicly saying that Maoist would lead the government after August 31 -- the deadline of the extended term of the CA -- as per the secret seven-point deal.