04.08.202623:01:25UTC+00NZX 50 Nears Record High, Tracks Wall Street Higher

New Zealand shares climbed 70 points, or 0.5%, to 13,973 in Wednesday morning trade, rising for a third straight session. The market followed an overnight rally on Wall Street, supported by strong corporate earnings and lower oil prices. The benchmark index was trading just below its record high of 13,977, set on July 29, with gains led by financials, consumer staples, and technology stocks.

Sentiment was further boosted by easing oil prices amid optimism over US–Iran peace talks, which helped moderate inflation concerns and dampened expectations of an imminent interest rate hike. However, the latest labour market data limited the advance. New Zealand’s unemployment rate rose to 5.6%, its highest level since the third quarter of 2015, fueling speculation that the Reserve Bank of New Zealand will move to tighten monetary policy.

Early leaders on the index included Summerset Group (up 2.0%), Infratil (1.4%), A2 Milk (0.9%), Westpac Banking Corp. (0.6%), Fisher & Paykel (0.5%), and Ebos Group (0.3%).