NZX50, kiwi soar on US-Iran circuit breaker; RBNZ stays on hold
Travel and tourism companies were among those leading local gainers.
Wednesday, April 8th 2026, 6:57PM
by Paul McBeth
New Zealand’s S&P/NZX 50 index and the kiwi dollar surged after US President Donald Trump announced a 10-day ceasefire with Iran, sending oil prices lower and reviving investors’ appetite for riskier assets.
Travel and tourism companies led the local benchmark higher, with Tourism Holdings, Auckland International Airport, SkyCity Entertainment Group and Air New Zealand among those on the green side of the ledger.
KMD Brands edged lower in heavy trading on the second day of the retail offering to raise $58.5 million to help shore up its balance sheet.
Meanwhile, the Reserve Bank kept the official cash rate at 2.25%, with governor Anna Breman saying the central bank will act “decisively and timely” if inflationary pressures start bedding in, but that the monetary policy committee wasn’t close to hiking at this meeting.
Relief rally
The NZX50 jumped 184.28 points, or 1.4%, to 13,253.94, with 34 stocks gaining, 12 declining, three unchanged, and Fonterra Shareholders’ Fund in a trading halt to allow for a $2 per unit capital return. Turnover across the main board was $152.3 million, of which Auckland Airport accounted for $20.1 million as the country’s main gateway rose 3.1% to $8.27.
Travel and tourism stocks were among those powering the local bourse higher after US President Trump announced a truce with Iran, having ratcheted up the rhetoric in run-up to the deadline.
Brent crude oil futures sank 13% to US$95.25 a barrel at 5pm in Auckland, and stocks across Asia rallied on the news, with Australia’s S&P/ASX 200 index up 2.7% in late trading, Japan’s Nikkei 225 surging 5.4% and Hong Kong’s Hang Seng advancing 2.8%.
“It’s not a long-lasting peace and there’s some risk that things could re-escalate in a couple of weeks’ time,” said Greg Smith, investment specialist at
Generate Investment Management. “Markets will take it today and we’re seeing that on the NZX.”
Rental campervan operator Tourism Holdings led the benchmark index higher, up 8.6% at $2.27, while Air New Zealand climbed 4.4% to 47.5 cents, travel software developer Serko rose 3.2% to $1.78 and SkyCity advanced 2.2% to 70 cents.
The kiwi dollar surged to 58.34 US cents at 5pm from 57.06 cents at 7am and 57.02 cents yesterday, as traders sold the greenback on the ceasefire news.
Meanwhile, the Reserve Bank kept the cash rate unchanged as expected, with governor Breman holding a press conference to talk through the decision, a move typically reserved for the quarterly monetary policy statements. The central bank forecasts inflation of 3% in the March quarter, accelerating to 4.1% in the June quarter.
Breman said a hike was considered by the policy committee, but not voted on, and that the central bank will act quickly if it sees signs of inflation bedding in.
Westpac NZ economists brought forward their forecast hike in the cash rate to September from December, saying the central bank’s concerns about the second-round inflation pressures were prominent.
The Bank of India also reviewed its monetary policy today, keeping its benchmark repurchase rate at 5.25% as expected, saying it kept its neutral stance to preserve flexibility if inflation pressures emerge.
It’s the economy
Generate’s Smith said New Zealand’s central bank seemed to be “more cognisant of growth” and the sluggish economic recovery providing spare capacity to delay rate hikes for now.
Locally, companies tied to the economy rallied on the NZX, with Fletcher Building climbing 5.1% to $3.09 and Freightways gaining 4.3% to $13.25.
The Ministry of Business, Innovation and Employment’s latest fuel stocks update showed a small increase in on- and offshore supplies across petrol, diesel and jet fuel, with no indication of supply disruption. Channel Infrastructure slipped 0.7% to $3.05.
Port of Tauranga posted the steepest decline on the day, down 1.9% at $7.90, while KMD slipped 1.3%, or 0.1 of a cent, to 7.4 cents on a volume of 5.7 million, in the heaviest trading of the day.
Infratil gained 1.9% to $11.80 after lifting the valuation of its CDC data centres business by 7.2% in the March quarter, including a A$500 million equity injection of which the infrastructure investor contributed half.
Outside the benchmark index, Rua Gold rose 2.9% to $1.75 after releasing its latest drilling results showing an inferred mineral across its regional exploration programme.
Comvita increased 0.8% to 67 cents after extending its banking facilities to the end of May as it works through the final structure of a capital raising to shore up its balance sheet.
Synlait Milk gained 1.2% to 43 cents after announcing the resignation of chief supply chain and technology officer Robert Stowell, who finishes in July.
Separately, ANZ New Zealand economists raised their forecast farmgate milk price by 35 cents to $9.85 per kilogram of milk solids after prices fell at the latest Global Dairy Trade event.
Paul is a staff writer for Good Returns based in Wellington.
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