NZ shares edge higher; A2 recovers some ground lost on China fears

The S&P/NZX 50 Index increased 4.13 points, or 0.04 percent, to 9,956.06. Within the index, 21 stocks rose, 20 fell, and nine were unchanged. Turnover was $132.3 million.

Stocks across Asia were upbeat, following the lead of the S&P 500 Index, which climbed 2.1 percent overnight on speculation the Federal Reserve may cut interest rates to preserve US economic growth in the face of a protracted trade dispute with China. China's Shanghai Composite was up 0.6 percent in afternoon trading as was Singapore's Straits Times Index. Australia's S&P/ASX 200 index advanced 0.5 percent.

"New Zealand hasn't followed the lead, and Australia's been a bit tepid as well," said Matt Goodson, managing director at Salt Funds. "It possibly reflects how extended our market has become."

Even after yesterday's 1.6 percent slide, the NZX50 is trading at a forward price-to-earnings multiple of 22.1 times, the highest across the major equity benchmarks tracked by Refinitiv in the Asia Pacific region. India's Sensex Index is trading at a forward PE multiple of 20.5 times.