New Zealand’s S&P/NZX 50 index slid for a second day in a mixed trading session across Asia, with cloud computing firm CoreWeave’s strong sales growth spurring gains for tech-heavy markets in South Korea and Japan, while the Commonwealth Bank of Australia’s slump in new mortgage applications cast a pall on both sides of the Tasman.

Mainfreight and Auckland International Airport were among the major drags domestically as oil prices continued to push higher, with negotiations to reopen the Strait of Hormuz dragging on.

Building materials firms Fletcher Building and Vulcan Steel didn’t take much heart from Statistics New Zealand figures showing growth in June quarter concrete production.

And Scott Technology climbed to a month high after the automation firm said it was on track to report record earnings and revenue, while NZME shrugged off the threat of MediaWorks’ new ASX-listed owner, Sports Entertainment Group.

Nervous times

The NZX 50 dropped 123 points, or 0.9%, to 13,737.66, with 37 declining, eight gaining and five unchanged. The S&P/NZX 20 index futures contract for September fell 0.5% to 7,730, with 130 lots traded for a value of $1 million, while the NZX 20 sank 0.9% to 7,735.91.

Turnover across the main board was $162 million, of which Contact Energy accounted for $38.2 million as it dipped 0.1% to $9.03, while Fisher & Paykel Healthcare declined 0.9% to $42.22 on a value of $21.2 million. Contact was the most heavily traded stock on the day, with a volume of 4.2 million shares changing hands.

Stocks across Asia were mixed as South Korea’s Kospi jumped 3.6% and Japan’s Nikkei 225 advanced 0.8% with AI-linked stocks such as SoftBank and SK Hynix back on the rise.

Meanwhile, Australia’s S&P/ASX 200 index dropped 0.5% after CBA’s declining mortgage applications kept investors on edge about the strength of the big four lenders across the Tasman. CBA was down 0.7% at A$172.73 in late trading. Dual-listed Westpac Banking Corp fell 1.6% to $42.02 on the NZX, while ANZ Group Holdings declined 1.3% to $43.50.

Brent crude oil futures rose 0.7% to US$89.49 a barrel at 5pm in Auckland, with no sign of a deal to reopen the Strait of Hormuz, despite mediator Pakistan’s optimism that an agreement was close.

Logistics group Mainfreight was one of the major drags on the NZX 50, falling 3.7% to $66.95 and Air New Zealand slid 2.4% to 41.5 cents.

Auckland Airport declined 1.4% to $8.64 after Forsyth Barr analysts Andy Bowley and Hugh Lockwood predicted a subdued result for the national gateway when it reports its earnings on Aug 20.

“Modest ebitda growth (we forecast +5%) will be largely offset by higher depreciation and interest costs as new assets are commissioned and equity raise proceeds are deployed,” the analysts said in a note to clients, referring to earnings before interest, tax, depreciation and amortisation. “Moreover, the full-year impact of a higher share count from the 2024 equity raise will weigh on EPS (earnings per share). We forecast a flat final dividend.”

Napier Port Holdings slipped 0.8% to $3.65 after reporting a 39% jump in June quarter earnings, despite a dip in container volumes in the period.

Serko snapped its 10-day run, falling 4.6% to $1.67.

Building foundations

Vulcan Steel posted the sharpest fall on the day, down 4.7% at $6.24, while Fletcher declined 1.1% to $3.75, even as Stats NZ figures showed a 3.7% seasonally adjusted increase in the volume of concrete produced in the June quarter from a year earlier.

Brad Olsen, economist at Infometrics, said the increased volumes suggested improving activity in residential and infrastructure sectors, despite the wider uncertainty coming from the Middle East conflict.

“Although we weren’t directly expecting that construction activity would immediately grind to a halt following the spike in fuel prices and the heightened uncertainty, today’s data also doesn’t include any indication of a pause in activity,” Olsen said in a note. “It adds further evidence to some early indicators showing the broader economy in the June quarter wasn’t hit as hard as might have been first expected.”

Tourism Holdings posted the biggest gain on the NZX 50, up 2.8% at $2.93, while Gentrack advanced 2.7% to $3.80 and Vector rose 1.4% to $4.95.

Outside the benchmark, Scott Tech jumped 8.8% to $2.71, its biggest one-day gain in more than two months, after the automation firm said its strategy to double revenue by 2030 was on track, as it forecast record revenue and earnings for the August financial year.

NZME increased 0.9% to $1.07. Radio rival MediaWorks was bought by ASX-listed Sports Entertainment Group at an enterprise value of $130 million, effectively doubling the Australian media group’s earnings once the deal is completed.

Radius Care Residential advanced 1.2% to 41.5 cents after outlining its strategy to shareholders at today’s annual meeting, and reiterating its expectation for underlying growth in the current financial year.

Meanwhile, Warehouse Group jumped 10% to a three-month 66 cents, rising for a second day after Macquarie brokers upgraded the stock to outperform and raised their target price by 12% to 84 cents.

And the kiwi dollar tapered off through the afternoon against most cross rates after a flurry of activity when prime minister Christopher Luxon’s grip on the National party leadership was again put to a vote of confidence, which he secured for a second time this year. Cabinet minister Chris Penk lost his portfolios over the leadership challenge.

The kiwi dollar fell to 58.67 US cents from 58.92 cents yesterday, and dropped to 83.15 Australian cents from 83.59 cents yesterday.

Reporting by Paul McBeth.