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

🇯🇵 A sharp flow reversal is underway, with equities now showing a clear tilt toward inflows after a period of widespread outflows, but the dominant theme remains heavily skewed away from Japanese industrial and financial stocks. The inflow count has moved to 11 from 16, while the top inflows are concentrated in industrial tech and materials, led by $6471-T with over $650 billion in flows. Meanwhile, the largest outflow, from Japan's Industrial and Financial Cohort, still dominates with a staggering $85 billion exited. This shift signals a potential rotation into industrial sectors, yet the heavy outflows from Japan’s industrial and financial firms serve as a caution. The market’s focus appears to be shifting toward industrial tech, machinery, and robotics, with top inflows confirming strong buying interest there. Next, watch whether industrial and materials sectors can sustain their inflows and if the Japanese outflow continues to fade, or if risk aversion resumes. The key test will be whether the inflow momentum in industrial tech broadens across more stocks or remains concentrated in top names.