NZ shares gain as power companies Meridian, Genesis, Mercury buoyed by low rate outlook

The S&P/NZX 50 index rose 70.77 points, or 0.8 percent, to 9,280.77. Within the index, 33 stocks gained, nine fell and eight were unchanged. Turnover was $187.6 million, of which Spark New Zealand accounted for $62.5 million.

Stocks across Asia rose after US legislators reached an in-principle funding deal to avoid another Federal government shutdown. Australia's S&P/ASX index was up 0.3 percent in afternoon trading, while Japan's Topix gained 2.2 percent and China's Shanghai Composite Index rose 0.7 percent.

"There's a bit of optimism around the Americans putting together something to avoid the shutdown at the end of the week," said Mark Lister, head of private wealth research at Craigs Investment Partners.

The Reserve Bank's policy review tomorrow also supported the local market today, as traders increasingly price in lower interest rates over the coming year. Lister said that boosted companies with "highly attractive and sustainable dividend yields" such as the electricity generator-retailers, property stocks and other utilities.