Asia Surge Leads Global Risk-On Push

Japan and China are the week's headline story. Japan pulled in $13.8B in net ETF flows over the past week. China added $12.9B. Together they outpaced every other geography except the US itself, which led with $24.7B net inflows.

The contrast with the three-month picture is sharp. Over 3m, China's net flow was only $18.9B — spread across a full quarter. In just the past week, it nearly matched that total. Flow imbalance for China hit 77.6 this week, up from a neutral 52.9 over 3m. That signals a meaningful acceleration, not a slow drift.

Taiwan also stood out. Its flow imbalance reached 96.4 this week — near-total buying pressure — on $5.9B of net inflows. Over 3m, Taiwan's imbalance was a more moderate 78.9.

On the other side, Hong Kong bled $1.8B this week. India saw outflows of $435M. Both had flow imbalances below 21, consistent with active selling pressure.

Geography Flows

Asia dominates the inflow story. Japan ($13.8B), China ($12.9B), Taiwan ($5.9B), and South Korea ($3.0B) all posted strong weekly net flows. Emerging Markets overall added $2.2B. Developed Europe was flat to slightly positive at $429M, though this is a reversal — over 3m, Europe was in mild net outflow at -$1.9B. That trend shift is worth watching.

Sector Rotation

Technology leads all sectors by a wide margin. IT pulled in $11.0B net this week, with a flow imbalance of 67.8. Over 3m, IT has attracted $77.1B — more than ten times any other sector. Financials added $1.2B this week. Real Estate brought in $617M.

Energy is the clearest loser. It shed $464M net this week and $5.2B over 3m. Communication Services also saw $201M in net outflows this week. The 3m picture for both sectors shows persistent selling pressure, not a one-week blip.

Asset Class & Strategy

Equities dominate everything. $76.7B flowed into equity ETFs in one week alone, versus $11.9B into Fixed Income. Over 3m, equities have attracted $800.8B versus $235.2B for bonds. Commodities flipped negative — a $30.5B outflow over 3m, though this week saw a small $509M net inflow.

On strategy, Active management is gaining ground fast. It drew $8.1B this week at a flow imbalance of 73.9 — and $231B over 3m, representing 52.9% of the relative flow benchmark. Dividend strategies posted a near-perfect imbalance of 94.7 this week, pulling in $4.1B. ESG flipped: it ran a $135M outflow this week but $9.1B positive over 3m.

The overall tone is clearly risk-on. Money is chasing equities, Asia, and growth — with commodities and energy left behind.