Japan Japanese Prime Minister Junichiro Koizumi held out an olive branch to China, saying he was willing to have a civil meeting with his counterpart after Beijing refused to apologize for violent anti-Japanese protests. Vatican Cardinals solemnly prayed for God's guidance before secluding themselves in a secret conclave to elect one of their number as the 265th pope of the Roman Catholic Church. India India and Pakistan said their peace process was "irreversible" and pledged to boost transport links across Kashmir, as Pakistan President Pervez Musharraf wrapped up an upbeat visit. Iraq Iraqi forces regained control of a lawless town near Baghdad but failed to find any hostages, putting paid to reports that Sunni gunmen had seized scores of Shiite residents and were threatening to kill them. Mideast Israel put itself on a collision course with Washington by inviting bids to build 50 new homes in the West Bank, just days after US President George W. Bush warned against any expansion of Jewish settlements. Lebanon Lebanon's newly named prime minister Nagib Miqati began talks with MPs to form a "restricted government" expected to hold crucial elections in May and tackle the country's economic crisis. Britain A fresh round of polls released 17 days ahead of the May 5 general election showed Britain's governing Labour Party maintaining a healthy lead over the opposition Conservatives. Iran Iranian President Mohammad Khatami commended Iran's armed forces at the annual military parade and said the country was ready to pay any price to oppose foreign aggression. Stocks Global stock markets plummeted on mounting concerns about the health of the US economy, while Asian shares were weighed down heavily also by anti-Japan protests in key market China. Cyprus The staunchly pro-reunification stance of newly elected Turkish Cypriot leader Mehmet Ali Talat has raised hopes for peace on Cyprus after decades of conflict and division, but analysts warned that change will not come quickly. Zimbabwe President Robert Mugabe marked 25 years of independence for his country by telling the West to mind their own elections and leave Zimbabwe alone. Comoros White ash from the erupting Mount Karthala volcano blanketed parts of Grand Comore, the largest island in the Indian Ocean archipelago of the Comoros, causing respiratory problems for residents who sought out masks to protect themselves from the debris.