The NZX 50 dropped 89 points, or 0.65%, to close at 13,531 on Wednesday, extending its losing streak to a third consecutive session. The decline tracked weaker U.S. stock futures amid concerns that the escalating conflict in the Middle East could trigger an energy shock, push inflation higher, and delay interest rate cuts. Local media also highlighted the risk that the crisis could spill over into petrol and gas prices, as well as foreign trade.
In China, New Zealand’s largest trading partner, the official PMI for February signaled weakness in both manufacturing and services, partly reflecting the drag from an extended Lunar New Year holiday. The data contrasted with private survey figures that suggested stronger underlying activity. Market losses were partially offset after Prime Minister Christopher Luxon reassured investors that Wellington would not join the U.S. in the ongoing conflict.
Declines were broad-based across sectors, led by non-energy minerals, producer manufacturing, and financials. Among the notable underperformers were Scott Technology (-4.4%), Millennium & Copthorne Hotels (-3.6%), Tourism Holdings (-3.1%), and Fletcher Building (-2.8%).
