NZ shares join global rout as bond markets stoke recession fears
The S&P/NZX 50 Index dropped 145.65 points, or 1.3 percent, to 10,704.11. Within the index, 39 stocks fell, four rose, and seven were unchanged. Turnover was $134.5 million on a volume of 27.1 million shares, slightly more than the 90-day average of 25.6 million.
Stock markets across Asia took their cues from a weak performance on Wall Street after the US Treasury yield curve inverted - where the rate on long-term bonds is lower than on short-term - for the first time since 2007. A sustained inversion is often seen as a sign of a looming recession. Australia's S&P/ASX 200 Index dropped 2.7 percent in afternoon trading, the worst performer across Asia Pacific, while Japan's Topix was down 1.1 percent and Singapore's Straits Times Index fell 1.5 percent.
New Zealand's benchmark index is the second-best performer so far this year, with the NZX50 up 21.5 percent, just behind China's CSI 300 Index which is up 21.7 percent.
Matt Goodson, managing director at Salt Funds Management, said volumes weren't very heavy, which is what typically comes when markets capitulate to a major slump, and that today's slide is against the backdrop of a strong performance so far this year.
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