New Zealand Stocks Under Pressure After Weak GDP Data

New Zealand shares tumbled 180 points, or 1.4%, to 13,135 in Thursday morning’s trade, snapping a two-session of gains after fresh data showed the country's GDP grew 0.2% qoq, below forecasts of 0.4% and the central bank’s 0.5% estimate. Economists also warned that the oil-price shock will weigh on domestic activity, as New Zealand is a net oil importer, while intensifying inflation pressures. Sentiment also soured after Wall Street’s sharp drop Wednesday, triggered by Fed Chair Powell’s caution over the inflationary risks of surging oil prices amid Middle East tensions. At its March meeting, the Fed held rates steady, noting inflation was easing more slowly than hoped. Most sectors retreated, led by consumer durables, communications, and process industries. Key decliners included Spark NZ (-5.3%), T&G Global (-4.5%), Summerset Group (-3.4%), and Meridian Energy (-3.2%). Traders now await China’s monthly fixing on key lending rates, given its role as New Zealand’s top trading partner.

The NZX 50 climbed 133 points, or 1.0%, to finish at 13,316 on Wednesday, extending gains from the prior session amid stronger U.S. futures ahead of the Fed’s rate decision later today, along with its first 2026 economic projections. In China, New Zealand’s top trading partner, the PBoC will hold a monthly review of its key lending rates on Friday, after keeping them at record lows for nine consecutive months in February to support growth. Domestically, Q4 GDP data is due in the coming days, with local media suggesting New Zealand's economy is turning a corner, helped by the primary sector and tourism. However, the escalating Middle East conflict has altered the outlook, with rising prices and supply chain disruptions weighing on sentiment. Consumer durables, industrial services, and utilities led gains, while logistics, healthcare, and tech services lagged. Standout performers included Tourism Holdings (6.6%), Scales Corp (4.7%), Hallenstein Glasson (3.0%), and Genesis Energy (2.8%).

New Zealand equities added 29 points, or 0.2%, to 13,219 in Wednesday morning trade, extending gains from the prior session after Wall Street closed modestly higher Tuesday on expectations that the U.S. Fed will hold rates steady later today. Investors brushed aside local data showing Q1 consumer sentiment weakened as households grew more pessimistic amid rising fuel costs linked to Middle East tensions. Meantime, the Q4 current account deficit slipped to NZD 5.98 billion from NZD 8.36 billion in Q3, though it widened from NZD 5.0 billion a year earlier. Industrial and consumer services led advances, while losses in energy minerals and communications offset them. Among early movers were Tourism Holdings (6.1%), Sky Network Television (3.0%), and PGG Wrightson (1.9%). Market focus now turns to Q4 GDP figures in the Pacific nation and February trade data for further direction. In top trading partner China, the PBoC will review its monthly fixing of key lending rates on Friday.