Inflows into the AI ecosystem strengthened for the 2nd week following the recent correction, with GEM funds attracting a 6-month high inflow of $4bn as the EM Index rebounded from its 200-day moving average. South Korea led the recovery with another $3.5bn of foreign inflows, while Taiwan recorded a 23-week high inflow of $1.8bn. Global Industrial funds saw inflows accelerate to a seven-week high of $1.3bn. A significant portion of the AI trade has become crowded over the past 3-months as returns have started moderating. Following central bank interventions, JPY-denominated flows into the US rose to $1.3bn, the strongest inflow since Jan'26. A similar trade into India had peaked in Aug'24, with Japanese funds remaining persistent sellers of India over the past year. India-focused long-only funds continued to witness redemptions since Jul'25, although the pace of selling has moderated. Since mid-June, India-focused long-only funds have outperformed EM long-only funds by ~10%, marking the strongest phase of relative outperformance since Feb–Apr'25. Gold inflows continued for the 5th week, with cumulative inflows of $5bn after $17bn redemptions since Mar’26. Commodity equity flows remain soft.