PRESS DIGEST-Financial Times, Wall St Journal Asia editions

SINGAPORE, Aug 8 (Reuters) - The Financial Times and the Wall Street Journal carried the following stories in their Asia print and/or Web site editions on Friday. Reuters has not verified these stories and does not vouch for their accuracy.

FINANCIAL TIMES (www.ft.com)

-- Pakistan's ruling coalition pledged on Thursday to impeach President Pervez Musharraf, in the clearest challenge yet to the authority of the country's pro-U.S. ruler.

-- Wall Street banks Citigroup (C.N: Quote, Profile, Research, Stock Buzz) and Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) agreed to buy a total of up to $20 billion in auction-rate securities and AIG (AIG.N: Quote, Profile, Research, Stock Buzz) shares plunged amid fears the insurer might need more capital.

-- Toyota's (7203.T: Quote, Profile, Research, Stock Buzz) net profit fell 28 percent in the financial first quarter of Japan's biggest carmaker, after a steep decline in U.S. sales of trucks and sport-utility vehicles.

-- Of all the Chinese officials working behind the scenes to produce a flawless Olympic opening ceremony on Friday evening, few face a task as daunting as those in charge of making sure it does not rain.

-- Executives of large private equity firms believe they have found ways of overcoming U.S. rules that make it difficult for their funds to buy large stakes in banks. This would position them to bolster the faltering sector without changes in regulations.

WALL STREET JOURNAL (www.wsj.com)

-- Chrysler LLC is in talks with Nissan Motor Co. (7201.T: Quote, Profile, Research, Stock Buzz)(NSANY.O: Quote, Profile, Research, Stock Buzz) about jointly producing midsize cars, a partnership that would move the U.S. auto maker toward a radical new business model.

-- Taiwan's new president, Ma Ying-jeou, asserting his island's right to its "international space," is about to test the limits of the political capital he has earned with China. -- The Japanese government assessed the economy as "weakening recently," acknowledging that the country may have entered a recession.