Lates News

The Iran conflict may help Asian tech stocks further outperform consumer stocks because people are increasingly worried that the inflation impact of war will outweigh the damage to the artificial intelligence supply chain. Asian tech stocks have risen more than 19% since the beginning of the year, while non-essential consumer goods indices have fallen nearly 7%. Both indices have fallen more than 9% since the outbreak of war. Fund managers expect that although geopolitical tensions will curb household spending, it will not hinder the global development of artificial intelligence, so the gap will further widen. David Chao, global market strategist at Schroders Asset Management, said, "We see foreign capital flowing more concentrated into the field of artificial intelligence compared to the Asian consumer sector." He added that this trend could intensify in the coming year. Cyclical stocks may attract a higher risk premium, indicating differentiation between artificial intelligence-related stocks and those more inclined towards the real economy sector.