Global equity funds extend inflow streak as tech and Asia demand stays firm

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Global equity funds inflow

Highlights

Global equity funds attract $10.19 billion in net inflows for a sixth straight week, driven by technology rebound and strong Asian demand.
Asian equity funds lead with $9.9 billion in net inflows, while U.S. equity funds post $6.65 billion in net withdrawals during the week.
Money market funds experience $38.5 billion in outflows, and gold and precious metal funds lose $1.51 billion, marking a cautious investor stance.

Technology rebound supports weekly fund buying

As reported by Reuters, citing LSEG Lipper data, investors bought a net $10.19 billion in global equity funds for a sixth consecutive week of net purchases, although that was down from $25.06 billion a week earlier. The latest flows are helped by stronger demand for technology and Asian funds as chip stocks recover, with South Korea's SK Hynix gaining attention after reporting record quarterly profit.

At the regional level, Asian equity funds lead inflows with $9.9 billion in net purchases, following $11.58 billion the previous week. European equity funds attract $4.54 billion, while U.S. equity funds record net withdrawals of $6.65 billion.

Sector data also points to a continued preference for growth-oriented themes. Technology sector funds pull in $5.5 billion, up from $5.07 billion the previous week, while industrial sector funds add $408 million and utilities funds post $928 million in outflows.

Markets still show some caution around the AI trade ahead of earnings reports from Alphabet, Microsoft and Amazon, suggesting investors remain selective even as chip-related sentiment improves.

Bond and money market flows weaken

Global bond funds draw $2.72 billion in net inflows during the week, the weakest level in six weeks. Within fixed income, global short-term bond funds post $2.67 billion in outflows, the first net sales since April 15, while government bond funds attract $2.62 billion and corporate bond funds take in $1.01 billion.

Money market funds see net outflows of $38.5 billion, reversing from $16.95 billion in inflows a week earlier. In commodities, investors withdraw $1.51 billion from gold and other precious metal funds, marking a second week of net sales over the past seven weeks, while energy funds bring in $177 million.

Emerging-market fund data covering 29,184 funds shows equity products remain in demand for a third straight week with $2.2 billion in net inflows. Emerging-market bond funds, however, register net sales of $1.85 billion, their largest weekly outflow since September 30.

Our earlier analysis of the Nasdaq 100 rebound highlighted how renewed interest in technology shares returned as markets positioned ahead of major earnings releases and potential Federal Reserve decisions. It noted that while the index was holding above key short-term support levels, mixed momentum indicators pointed to choppy trading and consolidation unless resistance was decisively broken.

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