NZ shares rally on speculation of flat US rate track; Spark gains

The S&P/NZX 50 index increased 9.1 points, or 0.1 percent, to 8,767.32. Within the index, 21 stocks rose, 24 fell and five were unchanged. Turnover was $129.3 million, of which Spark contributed $28.1 million

Stocks across Asia were modestly higher in afternoon trading, with Australia's S&P/ASX 200 up 0.4 percent, Hong Kong's Hang Seng gaining 0.2 percent and Japan's Topix rising 0.5 percent. A report by the Wall Street Journal that the Fed will hike rates this month and then adopt a more cautious approach was welcomed by investors who saw it as a sign that the interest rate track will be flatter than current expectations. Rising interest rates reduce demand for stocks as investors can lock in a higher return from interest-bearing investments.

Peter McIntyre, an investment adviser at Craigs Investment Partners, said flat interest rates next year should support global growth, which would make it easier for firms to maintain or increase earnings.

"That really pushed the market more towards a client-friendly close and we've seen positive leads right throughout Asia today. New Zealand's part of that," he said.