NZ shares outperform global rally as low rates bolster local outlook
The S&P/NZX 50 Index rose 61.23 points, or 0.6 percent, to 10,131.58. Within the index, 29 stocks gained, 13 fell, and eight were unchanged. Turnover was $144.2 million
Stocks on Wall Street rallied overnight on hope the US and China will find common ground and end their protracted trade dispute, which has seen the resumption of tit-for-tat tariffs being imposed. Stocks were up across Asia, with Australia's S&P/ASX 200 Index up 0.8 percent in afternoon trading. China's Shanghai Composite rose 1.4 percent and South Korea's Kospi Index increased 0.6 percent.
"We had positive leads out of the US, and then there's the fact that the New Zealand market has an extra tailwind from low interest rates," said Grant Davies, an investment advisor at Hamilton Hindin Greene.
The Reserve Bank cut the official cash rate to a record 1.5 percent last week, increasing the attraction of companies that pay reliable dividends and giving corporates cheaper access to finance. The lower return also tends to push down the currency, which is a boon for exporters who derive increased value from their foreign sales.
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