WELLINGTON: New Zealand stocks scaled an all-time peak on Wednesday, while a solid rally in mining shares helped lift the Australian market to its highest in more than a week.
Upbeat trade data from China, which saw exports returning to growth for the first time in nine months, combined with an overnight rally in oil prices kept investors happy. Australia’s S&P/ASX 200 index advanced 1.4 percent, or 67.1 points, to 5,042.70, extending Tuesday’s 0.9 percent gains.
New Zealand’s benchmark S&P/NZX 50 index hit a record high of 6,780.88, before stepping back slightly to 6,775.71, up 0.7 percent, or 49.7 points. Traders said investors were looking for higher returns, given record low interest rates and expectations for more easing from the Reserve Bank of New Zealand.
“The (stock) price rises are very much interest-rate driven, with investors switching from fixed interest and term deposits into the market,” said Grant Williamson, broker at Hamilton Hindin Greene.
Among the top performers, accounting software company Xero jumped 4.2 percent while Sky TV put on 3.7 percent. Fletcher Building advanced 3.4 percent. A2 Milk rose 1.1 percent as bargain-hunters emerged after the milk company lost 6.3 percent in the previous session. The New Zealand listings of Australian banks were also firm, with ANZ rising 2.1 percent and Westpac up 1.4 percent.
Those gains were also seen in Australia. ANZ shares rose 1.7 percent, while Westpac climbed 2.0 percent. Outperforming the financial sector were the major miners. BHP Billiton rose more than 5 percent and Rio Tinto gained 4.7 percent.
