Better news out of US and Europe drives NZX rally

The S&P/NZX 50 Index rose 105.63 points, or 0.9 percent, to 11,771.72. Within the index, 31 stocks rose, 12 fell, and seven were unchanged. Turnover was $163.9 million.

Stocks across Asia were strong after US manufacturing activity expanded in July at the fastest pace in more than a year, following data showing a small improvement to manufacturing activity across the Atlantic as well. Hong Kong's Hang Seng rose 0.8 percent in afternoon trading, while Japan's Topix was up 2 percent at the local market's close.

“We’ve seen an improvement come through Europe, into the US and into Asia, so it’s really a snowball running through markets,” said Peter McIntyre, an investment adviser at Craigs Investment Partners.

The local benchmark got an extra kick when the Reserve Bank of Australia held the cash rate at 0.25 percent. The S&P/ASX 200 rose almost 2 percent in afternoon trading.