New Zealand Equities Gain Ground

New Zealand’s benchmark S&P/NZX 50 rose 0.5% to close at 13,514 on Tuesday, following a muted prior session. The gains were supported by Wall Street’s rebound on Monday, with US tech shares recovering from recent losses. Investor sentiment was further supported by a rally in Asian markets, boosting export-driven companies and contributing to broader regional gains. Sector-wise, health technology, consumer non-durables, technology, and distribution services finished in the green. Leading the gains across the bourse were Third Age Health (+2.1%), Fletcher Building (+2.2%), Fisher & Paykel (+1.8%), Port of Tauranga (+1.7%), and Mainfreight (+1.6%). Investors are now focusing on China’s inflation data, New Zealand’s top trading partner, expected to ease to 0.3% from December’s near three-year high of 0.8%, due Wednesday morning, providing further cues on overall market sentiment.

Shares in New Zealand rose 42 points, or 0.3%, to 13,492 on Tuesday morning, following a subdued prior session. The upside was mainly supported by gains in logistics and healthcare, which offset falls in consumer services and transport. Sentiment improved on Wall Street’s positive lead Monday, ahead of a busy week of U.S. earnings and economic data. Traders also awaited local releases, including January PMI, December visitor arrivals, and Q1 business inflation expectations. Meanwhile, the central bank is set to hold its first policy meeting of 2026 next week, with cash rates expected to stay unchanged. In top trading partner China, forex reserves hit their highest since 2015, rising for a seventh consecutive month as the central bank extended its gold buying for the 15th straight month. However, concerns over potential global AI disruption risks capped gains. Early movers included Third Age Health Services (2.1%), Property for Industry (1.8%), Vector Ltd. (1.0%), and AFT Pharma (0.8%).

The S&P/NZX 50 index ended flat at 13,446 on Monday as investors remained cautious ahead of a busy economic data week. Locally, markets are awaiting January business PMI, December visitor arrivals, and Q1 business inflation expectations. China, New Zealand’s largest trading partner, is also set to release January inflation and producer price data, while the United States will publish its January unemployment rate and inflation figures. These releases are due later this week and are expected to provide signals on earnings prospects, interest rate expectations, and global risk sentiment. Among large-cap stocks, Infratil (+1.9%), Auckland Intl Airport (+1.4%), and Meridian Energy (+0.7%) posted gains, offsetting declines in Spark NZ (-2.2%), and Fisher & Paykel (-1.6%). Meanwhile, New Zealand is planning to build an LNG import facility in Taranaki by 2027–2028 to secure backup gas, ensure stable electricity, lower energy costs, and support energy and utility stocks.