NZ shares fall as prospect of smaller US rate cut knocks yield stocks

The S&P/NZX 50 Index dropped 67.87 points, or 0.6 percent, to 10,538.11. Within the index, 31 stocks fell, 10 rose and nine were unchanged.

Turnover was $103.5 million. Stocks across Asia were weaker, with Australia's S&P/ASX Index down 0.2 percent in afternoon trading. Hong Kong's Hang Seng fell 0.7 percent and Singapore's Straits Times Index declined 0.3 percent.

Better-than-expected US jobs data last week prompted some analysts to rethink the extent of predicted US rate cuts, and upcoming testimony by Fed chair Jerome Powell this week will be closely watched for any hints on which way the central bank is leaning.

Peter McIntyre, an investment advisor at Craigs Investment Partners, said lower swap rates had weighed on Asian stock markets as investors weigh up the new rate outlook.