Hong Kong stocks rebounded Friday on hopes for a breakthrough in U.S.-Iran negotiations.
The Hang Seng Index rose 1.9%, or 468.81 points, to close at 24,718.10, while the Hang Seng China Enterprises Index gained 1.9%, or 157.35 points, to finish at 8,374.43.
U.S. President Donald Trump said Thursday that a peace agreement with Iran could be reached as soon as this weekend, just hours after warning of further military action if talks failed.
According to Iranian media, Foreign Ministry spokesperson Esmaeil Baghaei said the agreement was largely complete and reiterated that Iran would not compromise on its red lines.
Oil prices fell to their lowest levels in two months, easing concerns over inflation and the potential economic fallout.
In corporate news, Alibaba (HKG:9988) closed nearly 3% higher after Bloomberg News reported that it had offered $1.5 billion to acquire the Chinese grocery-delivery platform Pupu.
Fujian-based Pupu is one of the few remaining independent online grocery platforms in China, according to the report.