The Hang Seng Index rose 117 points, or 0.6%, to close at 25,893 on Friday, recovering from a brief pullback in the previous session as Hong Kong equities advanced on signs that persistent industrial deflation in China may be easing. Sentiment improved after data indicated a turnaround in factory-gate pricing pressures, with investors viewing the shift as a potential inflection point for corporate earnings and broader economic growth. However, the fragile US-Iran ceasefire came under renewed strain as both sides traded accusations over breaches of commitments, including issues around the Strait of Hormuz, while Israeli strikes in Lebanon further heightened geopolitical tensions ahead of upcoming talks in Pakistan. Most sectors advanced, led by financial and technology stocks. Notable gainers included Semiconductor Manufacturing (4.6%), Guotai Junan International (27.7%), Deepexi Technology (48.8%), Shenzhen Xunce Technology (7.6%), and Geely Automobile Holdings (2.5%).