The ongoing conflict between the US and Iran has led to a significant divergence in Asia's stock market performance, with tech stocks benefiting from a rally driven by artificial intelligence (AI). Since the conflict began, the tech sector has surged nearly 10%, reaching an all-time high, while the consumer discretionary sector has seen a decline of nearly 10%. This disparity indicates a growing concern over rising energy costs impacting oil-importing economies in Asia, which could affect household spending and corporate profits. Analysts note that the tech sector's resilience is not necessarily a sign of confidence but rather a result of limited options, as many other sectors are directly affected by the war's economic fallout. Profit expectations for the information technology sector have risen by nearly 60%, contrasting sharply with a 7% decline in the consumer discretionary sector. The concentration of investment in AI raises concerns about the sustainability of this rally, especially if global capital spending slows down. Upcoming earnings reports from companies like ANA Holdings Inc. and Japan Airlines Co. may shed light on the broader economic impact of the conflict, as many firms have withheld forecasts due to uncertainty. Overall, the economic damage from the war is expected to linger, with authorities in Japan and Thailand revising growth estimates downward due to elevated oil prices.