INDIA: Shops and businesses in Kashmir's second city of Jammu closed for much of yesterday to protest against the massacre of 28 Hindus by suspected Islamic militants.
India's response to the attack, the worst since a May raid outside Jammu brought it close to war with Pakistan, has so far been muted and Deputy Prime Minister Lal Krishna Advani delayed a planned announcement of New Delhi's next steps until today.
On the streets of mainly Hindu Jammu, long spared the worst of the anti-Indian rebellion sweeping much of predominantly Muslim Jammu and Kashmir state, people were afraid.
Some analysts say militants may be increasingly targeting the south of the Himalayan region because of ever-tighter security in the mainly Muslim valley.
Financial markets in India and Pakistan weakened as investors waited for India to declare its next move.
Mr Advani had said he would outline New Delhi's response in yesterday's opening day of the monsoon session of parliament, but both houses adjourned a few minutes after sitting and officials said he would speak in parliament today.
In Saturday's raid, five attackers - two disguised in the saffron robes of Hindu holy men - lobbed grenades and fired on a crowd listening to a cricket match between India and England.
The killers then barged into nearby huts, shooting wildly.
The killings came just ahead of fresh rounds of shuttle diplomacy to the subcontinent by the US Secretary of State, Mr Colin Powell, and the British Foreign Secretary, Mr Jack Straw.
Mr Powell and Mr Straw telephoned the Indian Foreign Minister, Mr Yashwant Sinha, overnight to condemn the massacre.
Major attacks in Kashmir have frequently coincided with, or narrowly preceded diplomatic missions by envoys.
Pakistan swiftly condemned the latest attack, saying it was aimed at raising tensions on the subcontinent and rejected any suggestion that it could have inspired such violence. - (Reuters)