ISLAMABAD (Reuters) – Prospects for political stability in Pakistan faded on Tuesday, a day after a split in the ruling coalition, with a battle looming over who will become the next president of the nuclear-armed U.S. ally.

KARACHI (Reuters) – Pakistani stocks fell over 4 percent on Tuesday to a new two-year low as investors sold blue chips such as OGDC on fears a break-up in the coalition government would raise political uncertainty.

SOCHI, Russia (Reuters) – Russian President Dmitry Medvedev convened security chiefs on Tuesday to consider a plea from parliament to recognize two separatist regions of Georgia as independent, a move Washington says would be unacceptable.