On Wednesday, the NZX 50 rose by 64 points, or 0.5%, reaching 12,708 in early trading. This increase continued the upward momentum from the previous session, driven by strong performances in the industrial, healthcare, and retail sectors. Investor sentiment was buoyed by recent interest rate cuts from major central banks. China, New Zealand's largest trading partner, reduced lending rates to historic lows on Tuesday to stimulate growth and counteract pressures from U.S. trade tensions. Similarly, Australia's central bank lowered its cash rate to a two-year low in response to cooling inflation.
In New Zealand, attention shifts to the forthcoming 2025 budget, with expectations that the government will curtail spending in light of ongoing global uncertainties. Regarding trade, New Zealand's exports surged by 25% year-on-year in April, while imports remained subdued. However, the overall positive trend was limited by a significant drop in U.S. futures following Wall Street's losses on Tuesday, mainly due to a lull in the tech rally. Noteworthy stocks included Napier Port Holdings, which rose 6.3%, Winton Land Ltd. with a 1.9% increase, and South Port NZ climbing by 1.7%.
