welcome to "newsline." i'm keiko kitagawa in tokyo. rescue workers in the central philippines say they've saved 600 people from a ferry that hit a cargo ship and sank. they say they're still searching for 100. officials say at least 17 people died. the thomas aquinas hit a ship off the island of cebu. they say the vessel sank in about ten minutes. coast guard officials say the ferry was on its way into port after a voyage from the island

of mindanao. they say it was carrying 723 people. most were reportedly philippine oes. survivors are getting a medical treatment. searchers are looking for the missing people. coast guard officials are trying to figure out exactly how the disaster happened. supporters of egypt's ousted president mohamed morsi are back on the streets three days after a crackdown by authorities left more than 640 dead. security forces are again confronting the demonstrators. at least 27 people have died in ten cities including the capital cairo. members of mohamed morsi's base, the muslim brotherhood, called for rallies after friday prayers. security forces fought with them in the northern city of tanta. exchanges of gunfire have been reported in the east. members of the interim

government have warned they'll use live ammunition to any group that poses a threat to public order. supporters of former president morsi are demanding his reinstatement. ministry leaders forced him from office last month after millions of his opponents took to the streets. the two koreas are moving closer to resuming talks about reuniting families separated since the korean war. officials from south korea's red cross have proposed working level negotiations. he suggested an august 23rd meeting in the truce village of panmunjom. the offer came one day after south korea's president park guen-hye called on the north to allow family reunions in mid-september. >> translator: i asked north korea to open its heart to allow a reunion of separated families around south korea's thanksgiving day in september. >> the two koreas suspended family reunion talks in november

2010 after ties became strained. last month north korean officials proposed an inter-korean meeting on resuming the negotiations. but the rendezvous did not take place. negotiators from the two sides decided to focus on reopening the jointly operated kaesong industrial complex at the north. analysts say north korea will likely respond favorably to the south's call. the two sides agreed on wednesday to work together to reopen the industrial complex. indian navy officials say rescuers have recovered the bodies of three sailors trapped inside a submarine. the vessel caught fire and sank yesterday in a naval dock yard in mumbai. the fire aboard the 3,000-ton submarine lasted several hours. it was accompanied by a massive explosion. 18 sailors are believed to have been trapped inside. a navy spokesperson says it's

doubtful that any of the 15 remaining crew members survived. investigators have found that the torpedo compartment was badly damaged. they suspect a torpedo caught fire for unknown reasons triggering the huge explosion. india recently launched its first domestically built aircraft carrier. last week it also announced the reactor of its first domestically-produced nuclear submarine had achieved criticality. police in western japan are investigating explosions that ripped through a fireworks festival. the blast in the city left damage. shortly before the fireworks display began thursday evening tense of thousands had gathered along the banks of the river. firefighters say 60 people were hospitalized. they included a 13-year-old boy who suffered serious burns and

was unconscious. the explosions damaged several of the 350 stalls at the venue. a witness told investigators he saw fuel spewing out of the tank of a generator at one of the stalls. then he says it ignited and the stall went up in flames. a fire department official said the initial fire was likely caused by gasoline or other fuel. people across japan have been stepping outside this week only to run into a wall of heat. the hot spell has caused more consumers to stay inside and buy their gross ris online. the people at one online supermarket say their sales since the beginning of august have almost doubled from the same period a year ago. managers of summit-netsuper say consumers are buying more drinking water and other beverages and more ice cream.

they've had to hire new staff, and they've increased the number of daily deliveries to handle the extra orders. the people at major supermarket chains have seen an uptick in their online sales too, some by 50%. managers at those chains launched online stores about a decade ago. they targeted elderly customers and mothers with small children, but they say the hot weather has prompted more and more people to take advantage of their services. buddhists across japan have spent the week celebrating the festival of bon. they believe the spirits of their ancestors came back to join them. and now they're performing rituals to send those spirits back. people in the northeast sent off the souls of loved once who died 2 1/2 years ago in the earthquake and tsunami. the city of kes enum ma was devastated in the disaster. survivors went to a temple carrying model ships made of straw. they loaded the ships with fruit

and flowers as offerings for the spirits of lost friends and relatives. one by one they placed their ships in front of an altar. some reflected on how their lives have changed since the disaster and the importance of their buddhist tradition. >> translator: i finally have been able to rebuild my house. i was born and raised in this area, so this is the best place for me. i want everyone here to pray for good health. >> translator: i'm glad my children remembered to come back to this area and pray. >> people in the city of kyoto sent up the spirits of their ancestors by lighting bonfires in the shape of chinese characters. this one means big. they lit fires depicting five

characters on the slopes of five hills. buddhists have honored this tradition for more than 300 years. >> translator: i thought of my late grandparents. >> translator: people have carried on this tradition for a long time. i found it very moving. here's the three-day world weather forecast.

that wraps up this edition of "newsline." i'm keiko kitagawa in tokyo. thank you for joining us.