NZ shares outperform Australia as ANZ kicks off bank earnings

The S&P/NZX index advanced 103.93 points, or 1.2 percent, to 8,752.31. Within the index, 35 stocks gained, nine fell and six were unchanged. Turnover was $167.4 million.

Asian stocks followed Wall Street higher, with New Zealand one of the stronger performers. Australia's S&P/ASX 200 index was largely flat in afternoon trading after ANZ was the first of three major banks posting annual reports. ASB Bank parent Commonwealth Bank of Australia is in a different reporting period, but today sold its Colonial First State Asset Management arm to Japan's Mitsubishi UFJ for A$4.1 billion. National Australia Bank and its Bank of New Zealand subsidiary report tomorrow.

Greg Smith, head of research at Fat Prophets, said Australia's banking sector has been under pressure from the Royal Commission into financial services. Investors want to see how lenders will improve earnings as Australia's property market slows, he said.

"It's all about simplification and reducing complexity and ANZ are ahead of the curve on that front," he said.