Hang Seng Tech Index early gains quickly widened to about 2%, led by Horizon Robotics (09660.HK).

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.

The Financial Times reports the Royal Navy will order at least six general-purpose combat vessels able to deploy unmanned air and undersea systems, a plan due to be announced this week. The ships, intended as part of the Type 45 destroyer replacement, will be the navy's first hybrid-powered warships and are expected to enter service in the early 2030s. The Labour government is set to abandon a long‑planned eight-ship Type 83 destroyer programme and cancel the five-ship Type 32 frigate programme first announced in 2020 in favour of the new general-purpose vessels. The defence secretary’s final plan is expected to add at least £1bn to defence spending, raising new defence investment by more than £14.5bn versus earlier plans. Government says the vessels will act as unmanned-systems control hubs, extending operational reach and firepower without a proportionate increase in crew or cost.