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

🇯🇵 Equities are seeing a sharp flow reversal, with inflows outpacing outflows 18 to 9, yet the dominant theme remains heavily weighted toward industrial sectors. The largest outflow, centered on Japan's Industrial and Financial Cohort, hit nearly $74 billion, signaling a significant retreat from that region's industrial exposure. Meanwhile, industrial tech and materials led the inflow surge, with $6471-T attracting over $796 billion, reinforcing the sector's renewed appeal. This divergence underscores a clear shift: traders are trimming exposure to Japan’s industrial names while aggressively piling into industrial tech and machinery. The next test will be whether the inflow into industrial sectors sustains or if the outflows from Japan deepen, potentially signaling a broader risk reassessment in the industrial space. The market's next move hinges on whether this sector rotation consolidates or faces renewed selling pressure.