Japan Steals the Week From U.S. Equities

Japan topped all geographies this week with a $28.4B net inflow. That beat the U.S., which pulled in $24.6B. The gap is striking. Over three months, the U.S. leads with $674.6B vs Japan's $316.5B — but the weekly momentum has clearly shifted eastward.

China remains the biggest pain point. It shed $12.4B in the past week alone. Over three months the outflow reaches $48.2B. The flow imbalance sits at just 22 — deep selling pressure with little sign of reversal.

Geography: East Rising, China Falling

Japan's flow imbalance hit 88 this week — near-maximum buying pressure. The U.K. registered $2.2B in net inflows with an imbalance of 88. Global Ex-U.S. funds drew $2.6B with an almost uncontested 98 imbalance score.

South Korea saw $2.9B leave this week. That reverses a positive three-month trend of +$8.5B. Investors may be trimming recent gains. India flipped too. It gained $270M this week but lost $1.2B over three months — a slow bleed that appears to be stabilising.

Sector Rotation: Tech Holds, Financials Bleed

Information Technology grabbed the top sector spot this week with $2.1B in net inflows. Over three months it has pulled in $89.9B — the dominant sector by a wide margin.

Financials reversed sharply. The sector lost $752M this week after shedding $10.7B over three months. Health Care also bled $306M this week and $6.7B over the quarter.

Materials swung notably. It drew $545M this week. That stands in contrast to a three-month loss of $6.1B. This week's buying looks like a sharp tactical reversal. Real Estate added $408M on the week, building on a positive three-month trend of +$2.5B.

Energy was solid too. $331M flowed in this week. Over three months it has accumulated $11.6B in net inflows.

Asset Class & Strategy: Equities Lead, Commodities Flip

Equity ETFs dominated all asset classes. $55B flowed in during the week. Fixed Income added $12.7B. Commodities drew $2.6B this week — but that is a reversal from a three-month outflow of $75.7B. That swing is one of the sharpest trend breaks in this data.

Alternatives attracted $969M on the week with a healthy imbalance of 73.

On strategy, passive Vanilla funds lead with $46.2B in weekly inflows. Active funds added $9.4B and carry an imbalance of 78 — well above the broader market. Momentum strategies attracted $1.2B with a near-perfect imbalance of 98.

ESG continues to struggle. It posted a three-month outflow of $14.2B, though this week it managed a small positive $449M. The trend remains negative.

The overall picture is risk-on. Investors are buying equities, rotating into Japan and non-U.S. markets, and adding active and momentum strategies — while retreating from China, Financials, and ESG.