NZ stocks rise on interest rate outlook; dairy shares gain

The S&P/NZX 50 Index increased 37.18 points, or 0.3 percent, to 10,687.32. Within the index, 31 stocks gained, 18 fell, and one was unchanged. Turnover was $164.9 million.

Stocks across Asia were firmer today after cautious comments from Federal Reserve chair Jerome Powell overnight renewed expectations for a 50 basis-point rate cut in the US at the end of the month. Australia’s S&P/ASX 200 Index rose 0.5 percent in afternoon trading. Hong Kong’s Hang Seng rose 1.2 percent and Singapore’s Straits Times Index rose 0.7 percent.

“It’s been a pretty positive day in Asia,” said Peter McIntyre, investment advisor at Craigs Investment Partners. “The Federal Reserve in the US are probably tracking to the downside again rather than to the upside and that’s given markets a pretty positive boost and we’ve followed suit.”

Dairy players firmed, buoyed by broker upgrades and expectations tight global supplies will support prices near-term.