A-share market extended gains: Shenzhen Component rose more than 1%, ChiNext rose 1.6%, Shanghai Composite rose 0.2%.

A draft law titled Strategic Action to Ensure Security and Sustainable Development of the Strait of Hormuz and Persian Gulf is under review by Iran’s National Security Council, Parliament presidium member Salimi said. Key provisions would bar vessels from the United States, Israel and other hostile states from transiting the Strait of Hormuz; ban Israel-linked cargoes, military or civilian, from transiting the area; and bar passage for ships or cargoes that have taken part in operations against the resistance front. The draft would prohibit countries and individuals that have caused damage to Iran from transiting the Strait or Persian Gulf until they compensate for losses. Violations would carry penalties, including fines up to 20% of cargo value. The government would work with the armed forces on navigation guidance, vessel traffic monitoring and security and environmental protection in the Persian Gulf. The draft remains at expert review and Parliament has asked experts to submit revisions.

France's unemployment rate rose to 8.3% in Q2 from 8.1% in Q1, above economists' median forecast of 8.2% and the highest reading since end-2020, the national statistics office said. The weakening labour market has dented President Macron's record and led the government to shelve its goal of achieving full employment by the end of his second term next year. Officials and the data pointed to energy-price shocks from the Russia-Ukraine conflict and a new Iran-related conflict as key factors adding strain to the economy.