On Tuesday, the NZX 50 index experienced a decrease of 20 points, equivalent to a 0.2% decline, settling at 13,325 during early trading. This downturn reversed gains from the previous session, primarily impacted by weakened performance in the electronic tech and process industries. Investor sentiment became cautious following news from China, New Zealand's primary trading partner, which recorded its slowest annual growth in a year for the third quarter of 2025. Factors contributing to this slowdown included ongoing trade tensions with the United States, a persistent property market downturn, and weak consumer demand.
On the trade balance front, New Zealand reported its third consecutive monthly trade deficit in September, with this month marking the largest deficit in the sequence due to imports surpassing exports. Despite these challenges, losses were somewhat mitigated by a rally on Wall Street on Monday. This rally was fueled by optimism that the U.S. could avoid a government shutdown, advancements in U.S.-China trade negotiations, and the anticipation of key corporate earnings reports. Among the notable declines, Mercury NZ Ltd. dropped by 1.6%, Winton Land Ltd. by 1.4%, A2 Milk Co. by 1.2%, and Napier Port Holdings by 0.9%.
