SEOUL (DPA) — Samsung Electronics Co's net income rose 5.9 per cent to 7.57 trillion won (7.31 billion dollars) year-on-year in the first quarter thanks to its dominance on the smartphone market, the company said Tuesday.

The rise in net income came despite a fall in demand for smartphones and tablet computers in the first quarter, Samsung said.

The first-quarter operating profit of the world's largest manufacturer of memory chips, televisions and mobile phones fell 3.3 per cent to just short of 8.5 trillion won.

Sales came in at 53.7 trillion won, up 1.53 per cent compared to the same period last year.

SEOUL (DPA) — North Korea carried out live-fire artillery exercises near the maritime border with the South, South Korea's Joint Chiefs of Staff said Tuesday.

North Korean forces began firing shells at 2pm (0500 GMT), the Yonhap News Agency reported.

"We are carefully monitoring North Korea's exercise to sternly react if any of its shells fall in southern waters," said Kim Min Seok, a spokesman for the Defence Ministry in Seoul.

The Korean People's Army announced the drills in a fax to the South Korean Navy's Second Fleet, Yonhap reported.

The government in Seoul ordered inhabitants of five islands near the maritime border to go to evacuation centres, and deployed fighter jets, surveillance planes and warships.

The drill took place near Baengnyeong Island, the Korean Broadcasting System quoted the South's Joint Chiefs of Staff as saying. Baengnyeong Island lies in the Yellow Sea near the maritime border between the Koreas.

North Korean forces practised artillery fire on March 31 at same time US and South Korean forces were carrying out exercises.

Some of the North's shells landed in South Korean waters, leading to an exchange of artillery fire between the Koreas across the sea border.

By Girlie Linao (DPA)

MANILA — US President Barack Obama on Tuesday wrapped up his four-nation Asian rebalance tour in the Philippines with a vow that America's allies would "never stand alone" amid rising regional tensions over territorial disputes with China.

"Deepening our alliance is part of our broader vision for the Asia Pacific," Obama told US and Philippine troops before leaving Manila.

"Our commitment to defend the Philippines is ironclad and the United States will keep that commitment, because allies never stand alone," he added.

The Philippines has been struggling to defend its territories against alleged incursions by China in the disputed South China Sea, where Beijing has deployed ships and troops to reinforce its sweeping claims.

Obama said a 10-year defence pact signed hours before he began his visit in Manila, which allows a greater US military presence in the Philippines, would boost the Philippine military's capabilities.

"Under our new agreement, American forces can begin rotating through Filipino airfields and ports," Obama said. "We'll train and exercise together more to bring our militaries even closer, and to support your efforts to strengthen your armed forces."

After the meeting with the troops in a gym, Obama visited a nearby American war cemetery, where more than 17,000 US servicemen who died mostly in World War II are buried with some Filipinos

He began the day by viewing an electric mini-bus called the Comet, which was developed by US firm Pangea Motors with the aim of replacing some of the smoke-belching diesel jeepney vehicles that are often blamed for Manila's congested traffic.

He first inspected a traditional red jeepney with shiny chrome fenders, before stepping into the Comet.

Throughout his Asian tour that also took him to Japan, South Korea and Malaysia, Obama repeatedly stressed the need for countries to uphold international law and preserve freedom of navigation and commerce.

"We believe that nations and peoples have the right to live in security and peace, and to have their sovereignty and territorial integrity respected," he said. "We believe that disputes must be resolved peacefully and not by intimidation or force."

Analysts said Obama's Asian trip ended on a "high note" in terms of security cooperation because of the enhanced defence cooperation agreement with the Philippines.

But the trip failed to achieve a similar outcome for its goal to push the Trans Pacific Partnership, according to political science professor Benito Lim.

"It was his primary objective to make the countries he visited to sign the TPP," he said. "But not one of the countries signed the TPP. The Philippines pledged to look at it and we might agree."

The TPP, which is intended to replace the World Trade Organization, "is the American dream," Lim added. "That's their only way of offsetting China's economic dominance today."

On Monday, Obama stressed that the defence pact with the Philippines and Washington's pivot to Asia does not aim to counter or contain China.

"It's inevitable that China is going to be a dominant power in this region, just by sure size," he said after a meeting with Philippine President Benigno Aquino.

"The question is whether other countries in the region are also able to succeed and prosper on their own terms and attend to the various interest and needs that they and their people have as well," he added.