BBC Monitoring News Diary for Tuesday 4 July 2006.

(From BBC Monitoring International Reports)

Main stories at 0100 gmt

MIDDLE EAST: Deadline set by Palestinian groups holding Israeli soldier for Israel to free Palestinian prisoners or face consequences expires 0600 am local time (0300 gmt); Palestinian government has said it still believes there is chance for negotiated solution; Palestinian man was killed and another wounded by missile fired by Israel in northern Gaza late Monday (as available)

MEXICO: Watching developments. Leftist presidential candidate Andres Manuel Lopez Obrador said on Monday that he will challenge the apparent electoral victory of his conservative rival, Felipe Calderon. Full official results are not expected until Wednesday (Mexican sources)

Asia-Pacific

CHINA: Country's top advisory body, People's Political Consultative Conference (CPPCC), holds session (-7) to discuss "building new socialist countryside" and "enhancing nation's innovative capability" (Chinese news agency Xinhua)

JAPAN: Afghan President Hamed Karzai visits (-7); attends conference in Tokyo (see separate entry, 5) (Japanese news agency Kyodo)

THAILAND: Ruling Thai Rak Thai Party meets to choose candidates for parliamentary election due in autumn (Thai newspaper The Nation)

THAILAND: Opposition Democrat Party holds meeting of former MPs to discuss campaigning ahead of municipal and district elections; party officials have said intend to continue with business as usual despite legal action brought against party and threat of dissolution (Thai newspaper The Nation)

TONGA: King Taufa'ahau Tupou IV celebrates 88th birthday; expected to have returned on 1 July from New Zealand, where he has been undergoing medical checks since April; missed opening of parliament on 1 June (Tongan magazine Matangi Tonga)

PHILIPPINES: Anniversary of independence from USA (1946) (BBC Monitoring)

CHINA: Japanese opposition Democratic Party leader Ichiro Ozawa continues visit for talks with Chinese Ambassador to Japan Wang Yi; also expected to meet President Hu Jintao; Hu has refused to meet …