New Zealand Stocks Inch Lower

New Zealand shares edged down 20 points or 0.1% to 13,637 in early deals on Tuesday, marking losses for the second straight session amid weakness in consumer durables, energy minerals, and logistics. A widening conflict across the Middle East weighed on sentiment, with U.S. President Trump vowing 'whatever it takes' on Iran as Israel launched new airstrikes Monday. Caution also lingered ahead of PMI readings later this week in China, New Zealand's largest trading partner, amid concerns the Lunar New Year holiday may have slowed factory and services activity. Still, declines were capped by local data showing a rebound of 1.9% mom in building permits at the start of the year, after a 4.5% fall in December. Auckland Intl. Airport dropped the most by 2.7%, reflecting the impact of travel disruptions due to the geopolitical tensions. Other laggards were Meridian Energy (-1.8%), Infratil Ltd. (-1.3%), Winton Land (-1.0%), and Property for Industry (-0.8%).

The NZX 50 fell 66 points, or 0.5%, to close at 13,657 on Monday, halting gains in the prior two sessions, as plunging U.S. futures and escalating Middle East tensions curbed risk appetite. The conflict showed little sign of easing, with U.S. and Israeli leaders vowing continued strikes on Iran while Tehran pledged retaliation. Traders also positioned cautiously ahead of PMI readings later this week in China, New Zealand's largest trading partner, amid concerns the Lunar New Year holiday may have slowed factory and services activity. Early losses were trimmed by strength in logistics and consumer services, though weakness in healthcare, financials, and non-energy minerals weighed on the index. Meanwhile, optimism sustained that monetary policy in New Zealand will remain accommodative, as signaled by the central bank recently. Notable laggards included Tourism Holdings (-9.6%), Napier Port Holdings (-4.2%), Briscoe Group (-4.2%), Ryman Healthcare (-3.6%), and Gentrack Group (-3.6%).

New Zealand stocks tumbled 177 points, or 1.3%, to 13,546 in Monday morning trade, snapping two sessions of gains as geopolitical tensions pressured sentiment. Weekend developments included U.S. and Israeli strikes on Iran, the reported death of Supreme Leader Khamenei, Iran’s retaliation against Gulf states, and the closure of the Strait of Hormuz. Traders also turned cautious ahead of PMI readings in top trading partner China later this week, with concerns building that the Lunar New Year holiday could dampen factory and services activity. Locally, January building permits are due after December’s sharp six-month drop. Still, losses were capped by optimism that monetary policy in New Zealand will stay accommodative, as signaled by the central bank. Nearly all sectors weakened, weighed by healthcare, energy minerals, and transport. Among single stocks, Ryman Healthcare slid 2.8%, followed by Genesis Energy (-2.6%), A2 Milk Co. (-2.4%), and Fletcher Building (-2.0%).