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NZ shares rise on Fed restraint, local GDP growth

NZ shares rise on Fed restraint, local GDP growth

New Zealand shares rose after the US Federal Reserve signalled no rate rises there this year and local GDP data came in stronger than many economists had expected. Auckland International Airport extended its decline from a record, while also shedding rights to its interim dividend.

The S&P/NZX 50 Index rose 25.61 points, or 0.3 per cent, to 9,461.31. Within the index, 19 stocks rose, 24 fell, and seven were unchanged. Turnover was light at $87.7 million.

Stock markets across Asia were mixed with Australia’s S&P/200 index down 0.4 per cent in afternoon trading, Hong Kong’s Hang Seng rose 0.2 per cent, and Singapore’s Straits Times Index was barely changed.

Matt Goodson, managing director at Salt Funds Management, said bond yields “rallied hard” after the Fed’s policy review, which reined in future rate hikes even further. While that would normally be a boon for equity markets, Goodson said the weaker growth outlook there has probably also “raised fears of what it means for corporate earnings.”