New Zealand equities experienced a 20-point increase, or 0.2%, reaching 13,370 during Wednesday morning trading as they attempted to recover from significant losses in the preceding session. The upward movement was driven by gains in consumer durables, transport, and non-energy minerals sectors. Investors shifted their focus away from Wall Street's downturn on Tuesday, instead concentrating on the possibility that the Reserve Bank of New Zealand (RBNZ) might reduce borrowing costs later this month due to mild inflationary pressures.
Meanwhile, in China—New Zealand's largest trading partner—the People's Bank of China (PBoC) is set to review pivotal lending rates on Thursday, with expectations of maintaining the record-low levels. On the domestic front, third-quarter data revealed continued rises in producer input and output prices, while October’s composite Purchasing Managers' Index (PMI) reached a three-month peak, buoyed by strong manufacturing performance.
Despite these positive indicators, gains were tempered by increased caution surrounding several factors: Nvidia's earnings report later today, important U.S. labor data due this week, and escalating geopolitical tensions following China's refusal to participate in a G20 meeting with Japan regarding Taiwan. Among notable movers were Delegat Group with a rise of 3.2%, Napier Port at 2.3%, and T&G Global climbing 2.2%.
