Asia Steals the Show From the US

China led all geographies this week. ETFs tracking Chinese equities pulled in a net $9.1B over seven days. That's nearly double Japan's $7.6B inflow. The contrast with the three-month picture is striking. Over 3 months, the US dominated with $359B net. China's 3-month total was just $19.7B. This week's surge signals a sharp rotation toward Asian markets.

Taiwan and South Korea added to the momentum. Taiwan drew $5.4B net in the week, with a flow imbalance of 94.7 — near-unanimous buying pressure. South Korea added $5.4B with an 83.1 imbalance. Both markets have attracted consistent flows over 3 months, but this week's pace has accelerated.

Hong Kong was the sole Asian laggard. It shed nearly $1B over the week. That follows a $9.4B three-month outflow, the worst regional trend in the dataset.

Geography Flows

The US drew $4.5B net over the week. That sounds healthy, but the gross flows tell a different story. $57.9B flowed in, while $53.4B flowed out. The flow imbalance sits at 52 — barely positive. Over three months, US net flows were $359B. The weekly pace is slowing noticeably.

India saw $185M in net outflows over the week. Its flow imbalance fell to 12.6 — deep selling pressure. Over three months, India data was absent from the top movers entirely.

Sector Rotation

Technology dominated sector flows by a wide margin. It pulled in $7.3B net over the week. Over three months, IT attracted $77B net. It is the only sector maintaining strong momentum on both timeframes.

Energy reversed sharply. It added $493M net this week. Over three months, it bled $5.3B — the only sector with a significant negative 3-month total. The weekly number hints at a possible stabilisation, but the trend remains negative.

Financials flipped negative this week with a $258M outflow. Over three months, Financials showed a $3.7B net inflow. That divergence bears watching. Materials also slipped into outflows at $299M net this week, against a roughly flat 3-month total.

Industrials held steady at $841M net this week, consistent with a $3.2B three-month trend.

Asset Class & Strategy

Equities dominated across both timeframes. This week saw $46.5B net into equity ETFs. Over three months, $803.9B has flowed in. Fixed income added $16.2B this week and $238.3B over three months. Both asset classes show sustained buying pressure.

Commodities flatlined this week at -$24M net. Over three months, commodities lost $31.3B. Currencies also saw $266M in net outflows weekly and $7.1B over three months.

Active strategies are gaining share. They took in $5.5B this week versus $32.1B for passive vanilla. Over three months, active drew $225B against $438B for passive — a ratio that has been closing steadily.

Value strategies flipped to a weekly inflow of $1.2B. Over three months, Value was slightly negative at -$1.4B. That weekly reversal is the clearest factor rotation signal in the data.

Overall, the risk-on tone is intact — equities and tech remain the primary destinations — but the geographic tilt has shifted decisively toward Asia this week.