The New Zealand sharemarket posted its biggest gain for the week after a mighty 2% jump on Wall Street.
The benchmark S&P/NZX50 Index rose 1%, or 120 points, on Wednesday to 11,258.28, following a 0.1% decline on Tuesday .
Greg Smith, Devon Funds Management head of retail, said markets in the United States had pushed higher, with a rebound from recent lows appearing to be gaining some momentum.
“The New Zealand market’s been wearing the global sell-off, and we’ve seen some pretty high quality names sold off, so we’ve seen a bit of buying back in there.”
READ MORE: S&P/NZX50 Index inches down 0.1%, Ryman recovers some lost ground Dairy prices slip for a fifth global auction as Chinese demand weakens Serko sees ‘strong recovery’ in business travel after three years of losses
Overnight, US retail sales came in higher than expected, showing US consumers were in resilient shape, Smith said.
Also in the US, Federal Reserve chair Jerome Powell talked up inflation and the central bank’s plan to combat it, but also indicated that the Fed did not necessarily want to shock the economy with large rate increases.
In New Zealand, Fisher & Paykel Healthcare recovered ground lost on Tuesday, rising 1.3% to $21.05.
Among other blue chips, Auckland Airport was down 0.8% at $7.28, Mainfreight rose 2.2% to $74.10, Spark fell 0.8% to $4.78, and Infratil rose 1.3% to $7.90 ahead of its annual result on Thursday.
Ryman Healthcare was up 2.3% at $9.25, continuing to recover from a 7% slump on Monday ahead of its removal from a global index at the end of the month. The retirement village operator reports its annual result on Friday.
Shares in corporate travel technology company Serko fell 4.2% to $4.50 after it reported an annual loss of $36 million , its biggest since listing on the NZX in 2014. That followed a loss of $29m in 2021 and $9.4m in 2020.
The company said a recovery was starting to emerge, with a return in Australasian travel booking volumes to 78% of 2019 pre-Covid levels in March, and April bookings at 83% of 2019 numbers
Meridian Energy rose 4.7% to $4.65 after the power generator and retailer released a monthly operating update.
“Storage levels remained low, the weather has been quite dry, whereas demand’s been strong and that’s underpinned electricity prices so it’s a positive update,” Smith said.
Australia’s benchmark S&P/ASX200 Index was up 0.8% at 7174.3 in late afternoon trading, while markets were mixed across Asia.
Earlier on Wall Street, the benchmark S&P 500 index rose by an unusually wide daily margin of 2%, to 4088.85, after the positive US retail sales data helped to offset concern about inflation.
The blue chip Dow Jones Industrial Average rose 1.3% to 32,654.59, and the tech-heavy Nasdaq gained 2.8% to 11,984.52.
Big tech stocks led the rally. Apple and Microsoft were among the biggest winners.
Brent crude, the price basis for international oil trading, added 60 cents to US$112.53 per barrel in London. It lost US$2.31 the previous session to US$111.93.
– With AP