FX.co ★ New Zealand Stocks Close 1% Higher

On Monday, New Zealand's S&P/NZX 50 index saw an impressive rise, exceeding 1% to settle at 12,690 points. This surge was propelled by advances in energy-related stocks, as oil prices climbed amidst escalating tensions in the Middle East. Channel Infrastructure NZ spearheaded the gains in the energy sector, increasing by nearly 2%. Meanwhile, electricity producers, such as Meridian Energy, Mercury NZ, and Contact Energy, also exhibited notable growth, each rising by approximately 1.4% to 1.5%. Despite these gains, investor caution persisted due to ongoing geopolitical unrest, highlighted by reciprocal strikes between Israel and Iran over the weekend, with both countries warning of further conflict. In parallel developments, market participants absorbed Chinese retail sales data that surpassed expectations, offering reassurance due to China’s significant trade relations with New Zealand. Nonetheless, the enthusiasm was tempered by industrial output figures from China that fell short of forecasts. Domestically, the latest Purchasing Managers' Index (PMI) survey indicated that the services sector remained in contraction, showing the steepest decline since June 2024.