Coronavirus fears boost demand for yield plays
The S&P/NZX 50 Index gained 131.95 points, or 1.1 percent, to 11,834.54. Within the index, 30 stocks rose, 11 fell and nine were unchanged. Turnover was $181.4 million.
The yield on the US 10-year Treasury has dropped about quarter of a percentage point so far this year as investors fret over the impact of the coronavirus outbreak on the global economy.
ASB Bank economists predict the outbreak will slow New Zealand's economic growth by 0.6 of a percentage point. Finance Minister Grant Robertson today said the government's books were strong enough to weather the downturn.
Traders have been closely watching this week’s post-holiday restart of Chinese factories for signs of virus-related disruptions. Investors have been relatively upbeat as stock markets across Asia followed Wall Street higher.
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