The Hang Seng Index dropped 230 points, or 0.9%, to 26,170 on Friday, halting a three-day winning streak as sentiment turned cautious over prospects for a lasting US-Iran ceasefire deal. Market mood was shaped by reports that US President Donald Trump expressed confidence in an early resolution to the conflict, suggesting Iran had agreed to key conditions including scaling back its nuclear ambitions and reopening the Strait of Hormuz. He also announced a 10-day ceasefire between Israel and Lebanon, viewed as part of broader efforts to support further negotiations with Tehran. Despite these developments, investors remained wary of implementation risks, with the lack of clarity over a lasting agreement keeping risk appetite in check, prompting profit-taking after recent gains as energy prices fluctuated and geopolitical uncertainty persisted. Among major laggards were Tencent Holdings (-0.9%), Xiaomi Corporation (-0.9%), AIA Group (-1.6%), Geely Automobile (-0.8%), and HKEX (-0.8%).
