NZX50 hits record; prospect of lower rates drives yield hunt

The benchmark index rose as high as 10,309.89, and ended the day at 10,304.83, up 113.50 points, or 1.1 percent. Within the index, 30 stocks gained, 17 fell, and three were unchanged. Turnover was $130.5 million.

European Central Bank president Mario Draghi spurred demand for equities after indicating easier monetary policy was on the cards in Europe, while investors awaiting the Federal Reserve's latest policy meeting also expect the world's biggest central bank will indicate a track for lower interest rates. China's Shanghai Composite Index was up 1.5 percent in afternoon trading, while South Korea's Kospi 200 Index rose 1.4 percent, and Australia's S&P/ASX 200 Index increased 1.1 percent.

"It's a continuation of interesting times where central banks are a little bit like Sisyphus really - they're doomed to rolling the great stone uphill for all eternity trying to achieve 2 percent inflation which they can't at present," said Matt Goodson, managing director at Salt Funds Management.

"With rates being so low, clearly people are clustering towards dividend-paying stocks with relatively certain top-lines and high growth stocks which have little in the way of earnings so will find it difficult to disappoint."