New Zealand’s S&P/NZX 50 index closed at a record high as firms tied to the economic cycle such as Summerset Group Holdings, Fletcher Building and Freightways were at the top of the leaderboard after Statistics NZ jobs data showed higher unemployment in the June quarter, raising questions about the pace of future interest rate hikes by the Reserve Bank.

Large volumes for heavyweights Fisher & Paykel Healthcare, Auckland International Airport and Infratil underpinned the benchmark’s gains after a strong lead from Wall Street, with investors optimistic that the Strait of Hormuz could reopen in the coming days as tensions between the US and Iran ease.

Meanwhile, Precinct Properties NZ received fast-track approval to redevelop the downtown car park in central Auckland and Rua Gold was cleared to start exploratory drilling at a site in the Coromandel.

And after trading closed, waste management minnow WasteCo, fresh from hiring a new chief executive, announced plans to raise fresh capital and sell assets in what it described as an aggressive rollout of its turnaround plan.

New territory

The NZX 50 climbed 93.72 points, or 0.7%, to 13,997.18, with 22 stocks gaining, 24 falling and four unchanged. The S&P/NZX 20 index futures contract for September rose 0.4% to 7,830, with 140 lots traded for a value of $1.1 million, while the NZX 20 advanced 0.8% to 7,888.36.

Turnover across the main board was $138.3 million, of which Auckland Airport accounted for almost $23 million as it rose 1.2% to $8.95.

F&P Healthcare gained 1.7% to $42.99 on a turnover of $13.4 million, while Infratil increased 0.9% to $15.22 with $8.7 million of shares traded.

Stock markets across Asia were generally stronger, following gains in the US where the Dow Jones Industrial Average closed at a new record. Australia’s S&P/ASX 200 index was up 0.8% in late trading and Japan’s Nikkei 225 jumped 3.5%, while Hong Kong’s Hang Seng was marginally weaker.

“Geopolitical tensions were somewhat out of the news at the moment, and the markets are liking it, coupled with some nice little earnings,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “The employment data is probably giving the Reserve Bank a bit of room to hold rates.”

The New Zealand dollar declined across the board as a higher unemployment rate than economists predicted raised the prospect of the Reserve Bank taking a more sanguine approach to hiking the official cash rate. The kiwi fell to 58.71 US cents at 5pm in Auckland from 58.94 cents at 7am, and little changed from 58.68 cents yesterday. It dropped to 83.3 Australian cents from 83.61 cents yesterday.

Neither here nor there

Bevan Graham, economist at Salt Funds Management, said the Stats NZ figures had something for everyone, with stronger-than-expected jobs growth of 0.5% even as the unemployment rate at 5.6% exceeded forecasts for a 5.4% print.

“The recent decline in the annual rate of wage growth looks to have stalled which is good news for households but not so good for an inflation targeting central bank,” Graham said in a note. “That said, with an unemployment rate of over 5%, I don’t think the RBNZ will be worrying too much about any worrisome inflation emanating from the labour market anytime soon.”

Retirement village operators, typically linked to the housing market, were among the day’s biggest gainers, with Summerset Group Holdings leading the NZX 50 higher as it climbed 4.5% to $8.30, while Oceania Healthcare advanced 3.2% to 80 cents. Ryman Healthcare fell 2.4% to $2.05.

Meanwhile, Freightways – often seen as a barometer for the economy – gained 2.4% to $3.79 and materials firm Fletcher Building rose 2.7% to $3.79.

Goodman New Zealand posted the steepest decline on the day, down 4.3% at $2, while Scales Corp declined 2.2% to $6.65.

Precinct Properties NZ fell 1.9% to $1.03 after the commercial landlord’s Auckland downtown car park redevelopment received fast-track approval, and said it would provide more details when it reports its annual result later this month.

Stock market operator NZX declined 1.3% to $1.48, despite its monthly operating metrics showing an 18% jump in the volume of equity trading in July and a 2.7% lift in the value.

Spark New Zealand joined other telcos across Asia lower after SpaceX put the global sector on notice that its Starlink satellite service would chase their subscribers. The New Zealand telco slipped 0.3% to $1.965 and broadband network operator Chorus fell 1.1% to $9.50. In Australia, Telstra was down 1.5% in late trading, while Singapore’s Singtel slipped 1.1%.

Outside the benchmark, AoFrio fell 4.4%, or 0.3 of a cent, to 6.6 cents after the refrigeration systems firm reported a 22% slide in first-half revenue and pared back its annual forecast for earnings to be flat for the year.

Rua Gold dipped 0.2% to $1.4975 after getting consent to start exploratory drilling at its Glamorgan project in the Hauraki goldfield.

WasteCo was unchanged at 0.7 cents after hiring Australian waste sector veteran Brian Cohalan as chief executive, effective from the end of the month. After trading closed, the company said it agreed a variation to its banking arrangements with Kiwibank and planned to raise fresh capital to strengthen its balance sheet in the coming three months, along with selling non-core assets.

Reporting by Paul McBeth.