Flows are rotating into ASB.AX while Cross-Sector Resource & Industrial Metals weakens

🇯🇵 The market is seeing a notable shift from broad resource and industrial metals outflows into focused bank inflows, signaling a potential rotation rather than a sustained trend. While $CIA-AX led the exit with a $4 million outflow from the Cross-Sector Resource & Industrial Metals theme, inflows into ASB-AX and related Australian bank stocks have surged, with ASB-AX attracting $7 million alone. This divergence suggests traders are reallocating from commodity exposure to domestic financials, possibly reflecting a cautious stance on resource sector momentum. The key confirmation comes from the inflow spread, which now centers on bank stocks, with ASB-AX leading the charge. If this inflow momentum persists and broadens across other financials, it could mark a shift in market leadership, especially if resource outflows diminish. Next, watch whether the Australian bank theme sustains its inflow or if resource outflows resume, which would signal whether this is a fleeting tactical move or a deeper rotation.