A strong earthquake shook the Indonesian resort island of Bali early today, injuring at least seven people and sending panicked tourists and residents fleeing out of homes and hotels.

INDONESIA said yesterday it suspected two fugitives linked to al-Qaida masterminded the suicide bombings of crowded restaurants in tourist areas of Bali that killed at least 26 people and injured more than 100.

The two most wanted men in south-east Asia are believed to have masterminded the suicide bombings at three crowded restaurants on the Indonesian tourist resort island of Bali, officials said today.

Suicide bombers wearing explosive vests targeted tourist resorts on Bali with coordinated attacks that devastated three crowded restaurants on the Indonesian resort island, killing at least 26 people and wounding dozens of others, officials said today.

The scent of freshly cut timber mixed with the stench of powerful disinfectants and the smell of rotting corpses today as empty coffins were piled up behind a hospital morgue in Bali.