NZ shares buoyed by RBNZ optimism of brief coronavirus hit
The S&P/NZX 50 Index gained 63.70 points, or 0.5 percent, to 11,898.24. Within the index, 24 stocks rose, 21 fell and five were unchanged. Turnover was $193.8 million.
The Reserve Bank kept the official cash rate at 1 percent today, as expected, but changed its forecasts to remove the chance of future cuts with governor Adrian Orr talking down the long-term impact of the coronavirus outbreak on the domestic economy.
That followed an upbeat lead from Wall Street after China’s foremost medical adviser said the epidemic would likely peak this month and may be over by April.
Michael McCarthy, chief market strategist at CMC Markets, said equity investors were under-pricing the risk from coronavirus. In contrast, investors in commodities took a more pessimistic outlook on the global economy, he said.
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