On July 3 local time Iran held a farewell ceremony for the late Supreme Leader Khamenei. Attendees included domestic figures, religious leaders and multiple foreign officials.

China A-share military equipment sector extended gains; Hangfa Keji hit the daily up-limit. Aileda, Ligong Navigation, Longda, Hangtian Huanyu and Lihang Technology also rose.

The Wall Street Journal reports U.S. Defense Secretary Hegseth planned last month in Brussels to announce cuts to U.S. forces in Europe that would have exceeded earlier moves to cancel an armored brigade deployment to Poland and withdraw an infantry brigade from Romania. Insiders said the proposal was rejected after being submitted to U.S. Secretary of State Rubio and other senior officials. Hegseth instead said the U.S. will conduct a review of troop posture in Europe that could last up to six months.