Hong Kong stocks fell Thursday as stronger-than-expected U.S. inflation data raised concerns about further Federal Reserve rate hikes, triggering a selloff in technology and artificial intelligence-related shares.

The Hang Seng Index fell 251.45 points, or 1%, to close at 24,062.72, while the Hang Seng China Enterprises Index dropped 79.90 points, or also 1%, to 8,103.27.

U.S. inflation rose more than expected in September, raising concerns about a possible Federal Reserve rate hike later this year. Oil prices fell as investors weighed the potential impact of U.S. sanctions relief on Russian energy supplies, despite escalating Middle East tensions and reports of attacks on shipping in the Strait of Hormuz.

In corporate developments, Fibocom Wireless (SHE:300638, HKG:0638) fell 5% after its subsidiary planned to invest 50 million yuan for a 5.56% stake in a newly established private equity fund focused on AI terminals and applications.

Black Sesame International (HKG:2533) fell more than 2% after signing sales and technology development contracts worth about 300 million yuan with an unnamed A-share-listed company, including expected purchases of 250 million yuan in AI computing servers powered by its chips within a year.