Asia E-Mail This Story E-Mail This Story Printer-Friendly Format Printer-Friendly Format Japan's Stocks Rebound; Toyota, Mitsubishi UFJ Lead Advance, Olympus Gains Telstra First-Half Profit Falls 11 Percent as Customers Cancel Home Phones Lotte Shopping Shares Rise After South Korea's Biggest Public Share Sale Nepalese Boycott Municipal Elections; U.S. Calls Vote `Hollow' Feb. 9 (Bloomberg) -- Nepalese voters boycotted municipal elections to protest King Gyanendra's emergency rule in polls described by the U.S. State Department as ``hollow.'' Only 15 percent of voters cast ballots in the capital, Kathmandu, about 20 percent in Lalitpur city and 30 percent in Kirtipur municipality in yesterday's elections, Nepalnews.com reported, citing the Electoral Commission. The polls called by the king ``represented a hollow attempt to legitimize his power,'' State Department spokesman Sean McCormack said in an e-mailed statement from Washington. ``There was a clear lack of public support for these elections.'' King Gyanendra fired the government and imposed a state of emergency 12 months ago, saying the country of 27 million people was in danger of fragmenting under a rebel insurgency that began in 1996 and has killed more than 12,000 people. The election campaign took place amid attacks on government buildings and army bases by rebels who vowed to disrupt voting. Towns in western Nepal reported a low turnout, with less than 1 percent of the 50,000 eligible voters taking part in Mahendranagar, Nepalnews.com said. Only 45,000 of the 300,000 eligible voters in Kathmandu Metropolitan City cast ballots, it said. The Election Commission said there were an encouraging number of voters considering the unrest in the country. Only about 600 of the 4,000 seats were contested as many had only one candidate standing or candidates withdrew to support the boycott or in response to rebel threats, Nepalnews.com reported before the elections. Protesters Arrested Security forces arrested opposition supporters staging protests yesterday, Nepalnews.com said. About 137 activists were detained in Biratnagar. The government also restricted the media and refused to allow independent monitors to see the voting, McCormack said in the U.S. State Department's statement. ``We call on the king to release all political detainees and initiate a dialogue with the political parties,'' McCormack said. ``His continuing refusal to take these steps is leading his country further down the path of violence and disorder.'' Rebels attacked government buildings and bases of security forces in the town of Dhankuta on the eve of the election, killing one soldier, Nepalnews.com said. The group said late yesterday it was calling off a general strike that disrupted businesses and transport for three days this week because of the failure of the election. Democracy Reactivated King Gyanendra, in an address Feb. 1 to mark the first anniversary of his imposition of emergency rule, said the local polls and general elections scheduled for April 2007 are going ahead because his government has ``reactivated'' the democratic process in the country. A seven-party opposition alliance has staged mass demonstrations in recent weeks to demand an end to emergency rule and a boycott of the local elections. Puspa Kamal Dahal, the rebel leader known as Prachanda, said in an interview two days ago his group is ready to hold talks with King Gyanendra if the government announces a cease-fire ``with good intention of resolving the crisis.'' Rebels will accept the monarchy if the people are in favor of maintaining it, Prachanda said. The rebels won't be able to achieve their goal of a communist state because of economic, political and social realities, he said. The seven opposition parties reached an agreement with rebels in November on restoring democracy and reducing the powers of the king. The alliance wants a national assembly created to draw up a new constitution. Nepal's constitution was changed in 1990 to replace the absolute power of the monarchy with a multiparty democracy. Nepal depends on tourists to support its economy. The country, located between India and China, is home to Mount Everest, the world's tallest mountain, and eight other of the world's 14 peaks higher than 8,000 meters (26,248 feet). To contact the reporters on this story: Paul Tighe in Sydney at ptighe@bloomberg.net