FX.co ★ New Zealand Stocks Finish Week Higher

The S&P/NZX 50 index closed up 0.4% at 12,889 on Friday, recording its third consecutive day of gains, primarily driven by financial stocks following the release of new domestic data. New Zealand’s manufacturing activity shifted back into growth territory in July, with new orders and production reaching their highest levels in three years. Simultaneously, the annual food inflation rate climbed to 5% in July, marking its highest level since November 2023, up from 4.6% in June. Market participants are now focussed on next week's decision from the Reserve Bank of New Zealand, where a 25 basis point rate cut is largely expected. Across the Tasman in China, New Zealand's main trading partner, today's data revealed widespread economic weakness, increasing expectations for further stimulus measures from Beijing. Shares of New Zealand-listed Westpac and ANZ rose by 2.5% and 1.6%, respectively, while Heartland gained 1.25%. Major players such as Auckland International Airport (+1.05%), Infratil (+1.4%), Mercury NZ (+0.7%), a2 Milk (+1.3%), and Spark NZ (+1.4%) also performed strongly. For the week, the NZX 50 advanced by 0.35%, marking its second consecutive weekly gain.