New Zealand Shares Rebound Ahead of Rate Decision

New Zealand stocks advanced 72 points, or 0.5%, to 13,319 in early Thursday trade, sustaining gains from the prior session following a positive lead from Wall Street on Wednesday as AI concerns eased and U.S. economic data signaled resilience. Locally, the Reserve Bank held its cash rate at 2.25%, in line with expectations, and reaffirmed its accommodative stance, with Governor Anna Breman noting rate hikes would only follow stronger inflation and growth. Sector momentum came from process industries, logistics, and healthcare, though industrial services, transport, and electronic tech weighed on the upside. Standout performers included Scales Corp. (5.3%), Ryman Healthcare (2.5%), Contact Energy (1.2%), and Spark NZ (0.9%). Meanwhile, January FOMC minutes showed Fed officials split over the future path of interest rates. Traders now await January trade figures due Friday, after both exports and imports in the Pacific nation each grew by 15% yoy in December.

The NZX 50 surged 215 points, or 1.7%, to close at 13,247 on Wednesday, snapping a three-day losing streak after the Reserve Bank of New Zealand left interest rates unchanged, in line with expectations. Policymakers expressed confidence that inflation will ease toward the 2% midpoint within a year, citing spare capacity, modest wage growth, and core inflation within target. Bargain hunting also boosted sentiment after the index hit an over four-month low Tuesday, pressured by accelerating January food inflation and weaker service-sector activity amid adverse weather. Support also came from firmer U.S. stock futures after Wall Street edged higher Tuesday, ahead of Fed minutes later today and PCE Price Index data in the coming days. Sector gains were broad, led by healthcare, financials, and consumer non-durables. Bellwether Fisher & Paykel Healthcare jumped 3.1% while other standouts included Gentrack Group (5.7%), EBOS Group (3.9%), Property for Industry (3.2%), and A2 Milk Co. (2.6%).

New Zealand stocks climbed 101 points, or 0.8%, to 13,132 in Wednesday’s morning session, halting a three-day decline amid strength in consumer durables, commercial services, and healthcare. Traders engaged in bargain hunting after markets hit an over four-month low. They also anticipated the RBNZ’s first policy meeting of 2026 later today, with the board expected to hold steady at 2.25% and any tightening only in the latter part of the year. Cost pressures also eased, as Q4 data showed producer output prices edged up 0.1% qoq, after the prior 0.6% gain; while input prices fell 0.5%, the first drop in a year. However, gains were capped by Wall Street’s subdued performance Tuesday, ahead of the Fed minutes later today. Meanwhile, heavy rain and strong winds disrupted transport and cut power across New Zealand’s North Island, weighing on select sectors. Early movers included Spark New Zealand (1.4%), Briscoe Group (1.1%), Fisher & Paykel Healthcare (1.0%), and PGG Wrightson (0.9%).