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Obama reassures Japan, other allies on China as Asia trip begins

TOKYO - U.S. President Barack Obama has said Washington welcomes China's rise but that engagement with Beijing would not come at the expense of its Asian allies - as Chinese state media greeted his arrival in the region with a broadside accusing the United States of wanting to "cage" the emerging superpower. | Video

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Children's corpses reveal desperate attempts to escape Korean ferry

MOKPO/SEOUL - South Korean divers swam though dark, cold waters into a sunken ferry on Wednesday, feeling for children's bodies with their hands in a maze of cabins, corridors and upturned decks as they searched for hundreds of missing. | Video

World, South Korea 6:32am EDT

U.N. should have done more to prevent South Sudan massacre: Uganda

KAMPALA - Uganda's army, backing its neighbor South Sudan against a four-month-old rebellion, said on Wednesday U.N. peacekeepers should have done more to stop insurgents slaughtering hundreds of civilians there last week.

10:48am EDT

'Bridgegate' scandal threatens next World Trade Center tower

NEW YORK - The "Bridgegate" scandal that rocked New Jersey Governor Chris Christie's administration earlier this year is threatening a deal that would allow developer Larry Silverstein to finish building the next World Trade Center skyscraper.

Politics, U.S. 6:44am EDT

Hole in Afghan budget stirs unease as West starts packing bags

KABUL - A $375 million hole in the Afghan budget is threatening public projects and civil servants' salaries, officials say, putting the aid-dependent economy under stress just as Afghanistan awaits a new leader and foreign troops prepare to go home.

Afghanistan, World 8:45am EDT

U.S., euro zone activity up; China decline slows

NEW YORK/LONDON - The U.S. manufacturing sector expanded in April and the euro zone private sector started the second quarter on its strongest footing since 2011, while the pace of decline in Chinese factory activity slowed, surveys showed on Wednesday.

10:37am EDT
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U.S. top court upholds Michigan ban on college affirmative action

WASHINGTON - The U.S. Supreme Court on Tuesday further undermined the use of racial preferences in higher education by upholding a voter-approved Michigan law that banned the practice in decisions on which students to admit to state universities.

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Australia, Malaysia vow to keep searching to solve plane mystery

PERTH, Australia - Australia and Malaysia vowed on Wednesday to keep searching for a missing Malaysian plane despite no sign of wreckage after almost seven weeks, and as bad weather again grounded aircraft and an undersea drone neared the end of its first full mission.