New Zealand Shares Rebound

New Zealand stocks jumped 129 points, or 1%, to 12,830 in Wednesday morning trade, snapping a four-session losing streak amid bargain hunting after markets closed at a near eight-month low the day before. Sentiment was also boosted by a jump in U.S. equity futures following reports that the U.S., via intermediary Pakistan, had sent Iran a 15-point plan to end the conflict in the Middle East, now in its fourth week. However, the upside was capped by a warning from central bank governor Anna Breman, who said that interest rates could rise if oil-driven inflation persists amid geopolitical risks. Healthcare, transport, and consumer non-durables led the strength, with notable movers including Fisher & Paykel Healthcare (3.5%), Auckland Intl. Airport (1.1%), Summerset Group (1.0%), and Genesis Energy (0.9%). Traders now await the March business and consumer confidence in New Zealand, which will be released later this week.

New Zealand shares fell 198 points, or 1.5%, to close at 12,702 on Tuesday, swinging from morning strength and marking a fourth straight decline as weakness spread across tech services, financials, healthcare, and logistics. Markets hit their lowest level in nearly eight months, after central bank governor Anna Breman warned that interest rates could rise if oil-driven inflation persists amid the Middle East conflict. She added that targeted fiscal support would be more effective than monetary policy in cushioning the impact. A sharp drop in U.S. stock futures further pressured risk appetite as the Iran war dragged on and energy prices looked set to stay higher for longer. Investors also turned cautious ahead of New Zealand’s March business and consumer confidence data later this week. Among the biggest laggards were Gentrack Group (-7.2%), A2 Milk Co. (-3.3%), Mercury NZ (-3.0%), Freightways Group (-2.6%), and Fisher & Paykel Healthcare (-2.2%).

The NZX 50 rose 53 points, or 0.4%, to 12,953 in Tuesday morning trade, snapping a three-session losing streak as bargain hunters stepped in after the index hit a seven-month low. Sentiment was buoyed by Wall Street’s rally on Monday, following U.S. President Trump’s decision to delay military strikes on Iranian power plants after “productive conversations” with Tehran. Gains were tempered, however, by RBNZ Governor Anna Breman’s warning that interest rates could rise if oil-driven inflation persists amid the Iran conflict. In top trading partner China, Premier Li Qiang pledged to open the economy to foreign firms further and pursue a more balanced trade. Sector-wise, consumer durables, industrial services, and utilities led advances, with notable strength in Fisher & Paykel Healthcare (2.0%), Hallenstein Glasson (1.9%), Property for Industry (1.7%), and Contact Energy (1.3%). Traders now look ahead to New Zealand’s March business and consumer confidence data later this week.