Asian and Pacific stocks nosedived Tuesday, with Hong Kong's Hang Seng index off 5 percent after grim U.S. economic news battered Wall Street.

Tokyo's Nikkei index suffered a 5.64 percent drop in early trading. Japan's benchmark Nikkei index dropped nearly 4.7 percent after an initial fall of more than 5.6 percent in early trading.

Australia's All Ordinaries was down 3.5 percent in late afternoon, and Seoul's KOSPI index was down 2.4 percent after rallying from a 3.5 percent deficit.

The Shanghai composite index bucked the trend, gaining about two-tenths of a percent by early afternoon after dropping about three-quarters of a percentage point at the opening.

The slide followed a sharp dip in the U.S. markets on Monday, when Wall Street was hammered by investor bailouts and economic analysts concluded the United States is mired in a recession that is likely to continue for some time. (CNN)

Miami-based Oceania Cruises confirmed a failed pirate attack on its ocean liner Nautica in the Gulf of Aden over the weekend, saying the ship was fired upon but managed to outrun its assailants.

Two skiffs "deemed potentially hostile" attempted to intercept the cruise ship's course from a range of about 1,000 yards (meters), but the captain took evasive maneuvers, the company said Monday in a website statement.

"Nautica was immediately brought to flank speed and was able to out run the two skiffs. One of the skiffs did manage to close the range to approximately 300 yards and fired eight rifle shots in the direction of the vessel before trailing off.

"No one aboard Nautica was harmed and no damage was sustained," the company said. MIAMI, (AFP) - -

MOGADISHU (AFP) - - Somali pirates said Sunday that a deal for the release of an arms-laden Ukrainian cargo ship that they seized more than two months ago has been reached and that the release was expected within days. "It is just a matter of time and a few technicalities before the ship recovers its freedom," Sugule Ali, the spokesman for the group of pirates holding the MV Faina told AFP by phone from the ship. "I can't tell you what the ransom is but what can I say is that an agreement has finally been reached," he added. The pirate chief explained that he and his group still had to finalise the modalities of their escape and the ransom payment. "Within four days, we must leave the ship and we are preparing for the safe landing of our group," he said. "We have no doubt this problem will be resolved and I hope the owners will honour the last remaining points."

James Michael Biela, 27, was arrested Tuesday night and booked on suspicion of kidnapping, murder and sexual assault in connection with Brianna Denison's slaying and an attack of another woman the previous month.

The tip (after 10 months and 2,278 tips) that cracked the case came November 1 through the Secret Witness hot line, police said. Denison's friends woke early January 20 and couldn't find her. A small blood stain was on her pillow, and her shoes, purse and cell phone were left behind. Reno Police Chief Michael Poehlman said a friend of Biela's girlfriend called the tip line, suggesting him as a suspect. According to the tipster, the girlfriend told her that she had found women's underwear in Biela's car and confronted him about it.

After identifying him as a potential suspect, police conducted surveillance on Biela, who worked as a pipe fitter. Police interviewed him and asked whether he would submit a DNA sample, but he refused, they said.

Detectives then spoke with Biela's girlfriend, who allowed police to take a DNA sample from their 4-year-old son, Poehlman said. Police said that sample matched the boy's father to DNA evidence found both at the scene where Denison's body was found and on a rear door of the student apartment from which she was abducted.

Mallory Simon / CNN

So China is ready to join the second ‘Internet World War’? A US Congressional Commission said that ‘China has an active cyber espionage program (and is) targeting US government and commercial computers.’ The Commission also said that there are about 250 hacker groups in China that are tolerated and may even be encouraged by the government to enter and disrupt computer networks.
The Commission mentioned operation ‘Titan Rain’ which intruded into US military and government computer systems in 2002.