The RESERVE BANK OF AUSTRALIA has warned official rates could rise further, keeping Middle East tensions and oil prices in focus for policy. Matthew Hassan, head of Australian macro forecasting at Westpac, said oil and gas supply normalization will be a slow, bumpy process and persistent domestic inflation would force the RBA to hike again in August. He added the RBA board will face a difficult choice given already-soft economic growth.

Israeli military said Mansour Sami Mahmoud Shakhtout, a commander of a Hamas naval unit, was killed on Friday in an Israeli airstrike in central Gaza alongside two other militants. The military said the three were traveling in an armed vehicle and posed a threat. It said the naval unit is part of Hamas' military wing and is responsible for planning and directing attacks against forces in Gaza and inside Israel.

A-shares electronics and specialty gases stocks jumped in the afternoon session. Haohua Technology hit the daily limit; earlier Kaimet Gas had hit its limit and Yake Technology re-sealed a limit-up. Zhengfan Technology and Nanda Optoelectronics rose more than 14%, while Jinhong Gas, Huate Gas and Guanggang Gas also rallied.