AI-Led Rally in Asia Stocks Masks Deeper Damage from Iran War

Asia’s artificial intelligence-fueled rally is masking signs of strain, with gains in tech names overshadowing the impact of the US-Iran war on the broader market.

A rotation back into AI has propelled the region’s tech gauge almost 10% higher since the Middle East conflict began, taking it to an all-time high this week. In contrast, most other sectors remain under pressure, with consumer discretionary down nearly 11%.