Global equity funds extended their positive streak for a sixth straight week, drawing $10.19 billion in net purchases for the week ended October 28 (via LSEG Lipper). Strong earnings in the semiconductor sector—highlighted by record quarterly profits from South Korea’s SK Hynix—fueled institutional demand for Asian equities and technology assets, even as allocators moderated pacing ahead of mega-cap US hyperscaler reports.
📌 Regional Capital Flows:
• Asia Leads Global Inflows: Asian equity funds attracted $9.9 billion in net purchases (following $11.58B the prior week), driven by sustained momentum across Asian semiconductor supply chains.
• Europe Gains vs. US Pullback: European equity funds secured $4.54 billion in net additions, whereas US equity funds saw net withdrawals of $6.65 billion amid pre-earnings caution.
• Emerging Market Resilience: Emerging market equity funds absorbed $2.2 billion across 29,184 tracked funds, logging a third straight week of net positive inflows.
📌 Sector Rotation & Fixed-Income Dynamics:
• Technology Drives Sector Allocation: Tech sector funds captured $5.5 billion (up from $5.07B the prior week), while Industrials drew $408 million and Utilities experienced $928 million in net outflows.
• Bond Inflows Slow to 6-Week Low: Total inflows into global bond funds cooled to $2.72 billion. Government bonds absorbed $2.62 billion and corporate bonds took in $1.01 billion, while short-term debt funds registered $2.67 billion in net sales (the first weekly outflow since April 15).
• Sharp Money Market Reversal: Money market funds recorded steep net outflows of $38.5 billion, reversing sharply from $16.95 billion in net additions a week earlier.
• Commodities & EM Debt: Precious metals funds shed $1.51 billion, while energy funds took in $177 million. Emerging market bond funds saw $1.85 billion in net outflows, their steepest weekly drop since September 30.
💡 Strategic Takeaway: Capital continues to rotate away from cash instruments and defensive short-term fixed income toward risk assets, with institutional flows heavily concentrated in semiconductor-backed Asian markets and core technology infrastructure.