Asia Surge Leads Risk-On Rally

Japan and China ETFs are pulling in billions this week. That is the clearest signal in the latest fund flow data — money is rotating hard into Asia while the US market quietly dominates absolute volumes.

Geography Flows

The US attracted $40.6B in net ETF inflows over the past week. That is the largest single geography figure. But the story is the momentum behind Asia. Japan pulled in $14.5B, with a flow imbalance of 82 — strong buying pressure. China added $11.3B. Taiwan scored $4.2B with a near-perfect imbalance of 95.

These numbers look different against the 3-month picture. Over 3 months, China's net inflow was just $10.4B — meaning this week alone nearly matches the entire prior quarter. That is a sharp acceleration.

Hong Kong is the outlier. It posted a $1.6B outflow this week, with an imbalance score of just 20 — heavy selling. That pattern holds over 3 months too, where Hong Kong shed $9.3B. India also turned negative this week, with a $490M outflow and an imbalance of just 8.

Developed Europe stayed close to flat. The 3-month picture shows a $2.5B net outflow from the region, and this week barely improved. Germany remains under pressure in both timeframes.

Sector Rotation

Tech was the top sector by net inflows this week at $6.2B. That continues a dominant 3-month trend — IT has pulled in $70.4B over that period, the largest of any sector by a wide margin.

The notable divergence is Energy. It lost $748M this week, building on a $4.9B outflow over 3 months. Selling pressure there is consistent. Consumer Discretionary flipped negative over 3 months ($1.1B outflow) despite a modest $562M inflow this week — watch for that gap to close.

Consumer Staples and Utilities both posted small but steady inflows in both timeframes. That adds a defensive undercurrent beneath the broader risk-on tone.

Asset Class & Strategy

Equities dominated with $75.4B net inflows this week. Fixed income added $9.9B. Commodities pulled in just $848M this week — but over 3 months they bled $31B net. That is a dramatic reversal. Commodities went from heavy selling over 3 months to marginal buying this week.

Currencies saw $640M in outflows this week, consistent with a $6.5B drain over the quarter.

On strategy, vanilla passive funds led with $51.8B in weekly inflows. Active ETFs added $7.7B — and over 3 months, active strategies collected $230B versus vanilla's $437B. Active is taking a rising share of flows. ESG flipped to a small net outflow this week ($189M), breaking a $8.8B positive 3-month run. That trend shift is worth watching.

The overall tone is firmly risk-on. Equity inflows are accelerating, Asia is attracting fresh capital at a faster pace than the prior quarter suggests, and even fixed income participation remains healthy — pointing to broad-based buying rather than a narrow momentum chase.