The Polish fifth seed had four set points in the second-set tie-break but could not convert any of them as Davidovich Fokina secured his second ATP title.
Hurkacz, 29, was playing in his 13th ATP final and was bidding for his first title since winning in Estoril in April 2024.
The Spaniard, ranked 28th in the world, broke Hurkacz in the seventh game of the opening set and held his nerve in a tight second set to win in just under two hours.
Hurkacz, who will rise to 39th in the world rankings, now heads to Beijing for the ATP 500 tournament, where he will face American Learner Tien in the first round.
Earlier on Tuesday, Poland's Jan Zieliński won his sixth career ATP doubles title, partnering Britain's Luke Johnson.
The pair beat American Robert Galloway and Sweden's Andre Goransson 7-6 (9-7), 7-5 in the final.
(ał)
Source: PAP