The S&P/NZX 50 index closed 0.4% higher at 12,889 on Friday, marking a third consecutive day of gains, led by financial stocks as traders digested fresh domestic data.
New Zealand’s manufacturing activity returned to expansion in July, with new orders and production hitting their highest levels in three years.
Meanwhile, annual food inflation rose to 5% in July, the highest since November 2023, from 4.6% in June.
Attention now turns to the RBNZ’s rate decision next week, where a 25bps cut is widely anticipated.
In China—New Zealand’s top trading partner—data released today pointed to broad economic weakness, adding pressure on Beijing to roll out more stimulus.
New Zealand-listed shares of Westpac and ANZ climbed 2.5% and 1.6%, respectively, while Heartland gained 1.25%.
Heavyweights Auckland Intl Airport (+1.05%), Infratil (+1.4%), Mercury NZ (+0.7%), a2 Milk (+1.3%), and Spark NZ (+1.4%) also outperformed.
For the week, the NZX 50 added 0.35%, its second straight weekly advance.