Hong Kong stocks closed sharply lower Thursday as technology shares led a regional selloff, driven by concerns about rising AI investment costs.

The Hang Seng Index fell 717.19 points, or 3%, to close at 22,934.68, while the Hang Seng China Enterprises Index lost 254.22 points, or 3.2%, to finish at 7,689.19.

Technology shares came under pressure despite stronger-than-expected results from Meta Platforms and SpaceX, as investors questioned whether massive AI spending would deliver sufficient returns.

Oil prices climbed as renewed Houthi attacks in Saudi Arabia heightened fears of a wider regional conflict and supply disruptions.

Brent crude rose more than 2% to $111.03 a barrel, near a five-month high.

In corporate news, SITC (HKG:1308) closed more than 3% lower despite a 14% increase in revenue for January to September.