New Zealand's S&P/NZX 50 index experienced a rebound, closing 0.7% higher at 12,108 on Monday, effectively reversing the losses from the previous trading session. This uptick occurred in the wake of tariff exemptions on select technology products, which alleviated some concerns regarding US trade policy. However, a note of caution remains as President Trump and Commerce Secretary Lutnick have indicated that this measure might be temporary. Trump is poised to announce new semiconductor tariffs next week, though there might be some allowances made for certain companies.
On the domestic front, recent survey data depicted a contraction in New Zealand’s services sector for the second consecutive month, along with a decline in card spending. These developments underscore signs of a slowing economy, as was highlighted by the Reserve Bank of New Zealand (RBNZ) following last week’s interest rate cut to 3.5%. In the stock market, most sectors showed positive movement, led by gains in finance and miscellaneous shares. Noteworthy performers included Westpac Banking, with a 2.9% increase, ANZ Group up by 2.3%, and Infratil, which rose by 5.4%.
