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

🇯🇵 Equities are seeing a notable flow reversal, with inflows now outpacing outflows for the first time in recent sessions. The market’s dominant shift toward industrial tech and materials signals a potential bottoming, but the heavy outflows from Japan’s industrial and financial sectors serve as a stark warning against overconfidence. Proof lies in the flow data: inflows into Industrial Tech & Materials surged to +$650.35B, led by $6471-T, while outflows from Japan’s industrial and financial cohort hit -$85.11B. The divergence suggests a pivot away from Japan’s sectors into more cyclical industrial themes, yet the persistent outflow from Japan warns of underlying risk. Next, watch whether the inflow momentum into industrial themes sustains, or if the outflows from Japan regain strength, signaling a potential reversal.