The NZX 50 fell 72 points, or 0.5%, to 13,651 on Tuesday, declining for a second straight session and mirroring weakness on Wall Street overnight. Sentiment was hit after US President Trump vowed to reinstate a blockade on Iranian shipping through the Strait of Hormuz.
Climbing oil prices amid the escalating conflict in the Middle East continued to pressure markets, as mounting inflation concerns reinforced expectations of additional interest rate hikes. Mood was further dampened by Reserve Bank of New Zealand Chief Economist Paul Conway, who warned that stubborn inflation stemming from recent Middle East–related supply shocks could necessitate further monetary tightening.
On the data front, New Zealand visitor arrivals rose 6.7% in May, the slowest pace of growth in four months. Sector-wise, financials, utilities, and industrials led the decline, with notable losses in Auckland International Airport (-3.3%), ANZ Group (-2.5%), Infratil (-1.9%), Summerset Group (-0.9%), and Westpac Banking Corp (-0.8%).
