New Zealand Equities Extend Strength

Shares in New Zealand rose 100 points or 0.8% to 13,029 in early deals on Thursday, marking gains for the second straight session following a positive lead from Wall Street on Wednesday, as traders followed the latest developments out of the Middle East, hoping for progress toward ending the war in Iran. However, advances were capped by RBNZ Governor Anna Breman's warning that the Iran war could raise near-term headline inflation and weaken New Zealand’s growth momentum. In top trading partner China, Beijing may launch countermeasures after Mexico imposed new tariffs on imports, escalating trade tensions between the two countries. Energy minerals and industrial services drove the upside, with standout performers including Hallenstein Glasson (1.6%), Scott Technology (1.3%), Summerset Group (1.1%), and Mainfreight Ltd. (0.6%). Traders now await the release of New Zealand's business and consumer confidence data for March, scheduled for Friday.

The NZX 50 jumped 227 points, or 1.8%, to close at 12,929 on Wednesday, ending a four-session losing streak as bargain hunters returned after the index hit an eight-month low a day before. Sentiment improved amid a rally in U.S. stock futures and hopes for progress in resolving the Middle East conflict, after President Trump said Iran wants to “make a deal” and confirmed a U.S. 15-point plan was sent to Tehran. In China, New Zealand's main trading partner, Beijing urged Washington to maintain stable and sustainable trade ties despite ongoing frictions. However, caution emerged ahead of New Zealand’s March business and consumer sentiment data due later this week. Meanwhile, RBNZ Governor Anna Breman cautions that the Iran war to raise near-term headline inflation and weaken New Zealand’s growth momentum. Gains were almost broad-based, led by healthcare, utilities, and transport. Standouts included EBOS Group (4.4%), Infratil (3.5%), Sanford (2.9%), and Fisher & Paykel Healthcare (2.8%).

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.