If there are any records in Table1 that are not in Table2, the above statement will set f1, f2, and f3 to null on those records. If this is not the desired behavior, you could try the following:
Update Table1 set (f1,f2,f3) = (
select f1,f2,f3 from table2
where table1.key = table2.key)
Where table1.Key in (Select table2.key From table2);
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