NZ shares left behind as Asian markets rally after Nikkei rout

The S&P/NZX 50 Index dipped 18.73 points, or 0.2%, to 12,245.76. Across the main board, 87 stocks fell, 59 rose, and 33 were unchanged. Turnover was $136.1 million, in line with the July daily average value of $137m, with Arvida accounting for $22.9m of the day’s trading. 

NZ’s benchmark index was among the laggards across Asia as other markets recovered from widespread selling on Monday when Japan’s Nikkei 225 had the worst day of trading since the 1987 crash on fears about a US recession and concerns that tech investments funded by a cheap yen were being rapidly unwound. 

“New Zealand never got hit as hard, and it’s been a bit of a laggard,” said Greg Smith, head of retail at Devon Funds Management. “We don’t have the tech exposure that America has; we’ve got quite different drivers and pressures here.”

Many central banks have projected looser monetary policy as runaway inflation comes under control.