The Hang Seng Index fell by 280 points, or 1.1%, to around 26,340 on Friday, reversing gains from the previous sessions as renewed tensions in the Middle East dampened investor sentiment. The US and Iran exchanged fire in the Strait of Hormuz, with both sides accusing each other of initiating the attack, raising fears of further escalation in the region and potential disruption to global energy shipping routes. Locally, a risk-off tone was evident across sectors, as investors engaged in profit-taking and scaled back exposure to equities. However, Hong Kong Exchanges and Clearing proposed reviving gold futures as part of efforts to enhance risk-management tools amid geopolitical uncertainty and increased demand for hedging instruments. Notable laggards included Tencent Holdings (-1.3%), AIA Group (-1.5%), SMIC (-3.1%), Xiaomi (-0.3%), and Sun Hung Kai Properties (-2.0%).