Flows are rotating into Industrial Tech & Materials while Japan's Industrial and Financial Cohort weakens

🇯🇵 Equities are seeing a sharp flow reversal, with inflows dominating outflows by nearly 2.4 to 1, signaling a potential shift toward risk appetite. The biggest flow is into Industrial Tech & Materials, with $6471-T attracting a massive $676.56B, while the largest outflow remains from Japan's Industrial and Financial Cohort, led by $1812-T with $80.38B leaving. This divergence underscores a move away from defensive themes into industrial and manufacturing sectors. The confirmation comes from the inflow surge into industrial-related themes, contrasting with the broad-based outflows from Japan and cross-sector defensive plays. The key test will be whether industrial inflows sustain and broaden beyond the leader, $6471-T, or if the strength proves concentrated. Watch for continued inflow momentum into industrials next week to confirm a more durable risk-on stance.