AI Rally Pushes Asia Tech to Record High, Masking Iran War Damage

Asia's tech gauge has hit an all-time high, up around 10% since the Middle East conflict began, driven by surging AI optimism, hyperscaler capex outlooks, and a 60% rise in information-technology earnings forecasts over three months. This narrow rally, boosted by Samsung's semiconductor profits jumping 48-fold, conceals broader damage from the US-Iran war, with consumer discretionary down nearly 11%, estimates cut 7%, and only 55% of MSCI Asia stocks above their 200-day average. It follows a short-lived March 17 rally that faded as oil held above $100/barrel; Japan's Nikkei closed 0.1% lower while South Korea's Kospi rose 1.6%.