New Zealand’s S&P/NZX 50 index posted its biggest weekly gain since June with Serko and Vulcan Steel leading the benchmark higher as global bond markets settled down after renewed fighting in the Middle East raised the threat of rate hikes through the end of the year.

The dual-listed lenders ANZ Group Holdings and Westpac Banking Corp did the heavy lifting on Friday, with the NZX 50 joining most Asian markets higher ahead of US jobs data.

Materials firms such as Fletcher Building, Vulcan Steel and Steel & Tube Holdings rallied after Statistics New Zealand figures showed business construction activity in the June quarter was stronger than anticipated, while retailers were broadly stronger as ANZ’s internal card spending data was flat.

Meanwhile, Bremworth suitor David Ferrier formally lobbed in his partial takeover for the carpetmaker at 90 cents a share, having ruled out accepting a higher offer from rival Godfrey Hirst’s parent.

Calmer bond markets

The NZX 50 climbed 128 points, or 0.9%, to 13,974.18, taking the weekly gain to 1.5%.

Serko posted the biggest gain on the week, up 9.9% as it snapped three weeks of declines, while Vulcan advanced 9% and Genesis Energy rose 6.9%. Summerset Group Holdings posted the steepest slide for the week, down 3.8%, while a2 Milk Co dropped 3.3% and Ebos Group dropped 3.1%.

Within the index on Friday, 42 stocks gained, six fell and two were unchanged. The S&P/NZX 20 index futures contract for September climbed 1.1% to 7,743, with 70 lots traded for a value of $541,000, while the NZX 20 advanced 0.7% to 7,767.18.

Turnover across the main board was $105.9 million, of which Fisher & Paykel Healthcare accounted for $14.1 million as it rose 1.2% to $44.84.

New Zealand’s market joined a rally across Asia as investors took heart from Federal Reserve governor Christopher Waller’s comments that he would wait for next week’s inflation data before deciding whether to support a hike or a hold at the upcoming policy review. The yield on 10-year US treasuries fell 2 basis points to 4.76% as bond traders dialled back their bets on the Fed hiking.

Japan’s Nikkei 225 was up 1.2% in late trading, while Hong Kong’s Hang Seng jumped 2%. Australia’s S&P/ASX 200 index was a laggard across the region, down 0.1% in late trading.

“We saw the market really rally strongly on the yield relief,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “Jobs numbers in the US are going to be critical for not only the Fed, but the market also wants to keep an eye on whether there’s a significant softening and whether the economy is resilient or starting to weaken.”

The dual-listed banks were among those driving the NZX 50 higher on Friday, with ANZ up 0.5% at $46.78 and Westpac gaining 0.8% to $43.04.

Serko posted the biggest gain on the day, climbing 7.3% to $1.61, joining a global rally among software companies after Nasdaq-listed Snowflake reported better than expected quarterly earnings. Gentrack rose 3.8% to $4.60, while Vista Group International advanced 1.1% to $2.72.

Hallenstein Glasson surged 6.3% to a record $12.39 in a generally positive day for retailers after ANZ’s internal card spending figures showed household expenditure was flat in August. Briscoe Group increased 0.7% to $4.49 and KMD Brands rose 1.2% to $1.71, while outside the benchmark Warehouse Group slipped 0.7% to 67.5 cents and Michael Hill International gained 1.1% to 46.5 cents.

Busy beavers

Materials firms rallied after Stats NZ figures showed building activity was busier than predicted in the three months ended June 30, with strength in both commercial and residential work.

Wesley Tanuvasa, an economist at ASB Bank, said the figures indicated the construction sector weathered increased fuel prices and economic uncertainty reasonably well through the quarter.

“There is still momentum in this economy, and we remain hopeful that the recovery we were beginning to see prior to the Middle East conflict can resume,” Tanuvasa said in a note. “However, the global environment is not benign, and external shocks are becoming more common. This keeps the risk of more start-stop momentum on the table.”

Fletcher rose 1.3% to $3.91, Vulcan gained 2% to $7.25, and Steel & Tube increased 1.6% to 31.5 cents, while Metro Performance Glass dipped 1.2% to 84 cents. Property developer Winton Land – which resumed trading yesterday – jumped 8.8% to $1.18.

Contact Energy posted the biggest decline on the NZX 50 on Friday, falling 1.8% to $8.67, while Tower slipped 0.8% to $1.85 and a2 Milk dipped 0.8% to $7.99.

Kiwi Property Group was the most heavily traded stock on the day with a volume of 2.3 million shares changing hands as the commercial landlord rose 2.2% to 92 cents.

Outside the benchmark, Bremworth fell 1.3% to 76 cents after Ferrier’s Mangawhai Collective formally filed its partial takeover bid for between 50% and 55% of the carpetmaker, offering 90 cents per share. Ferrier yesterday said he wouldn’t support a new proposed scheme from Mohawk Industries’ Floorscape offering 95 cents a share for 100% of Bremworth’s shares.

The kiwi dollar rose to 58.96 US cents at 5pm in Auckland from 58.63 cents yesterday.

Reporting by Paul McBeth.