NZX50 sinks as Iran strikes on Qatar chill Asian markets

Figure of a man sitting on top of a pile of coins

New Zealand’s S&P/NZX 50 index joined the global slump after Iran’s attack on Qatar pushed oil prices higher and chilled investors, with the fog of war clouding the outlooks for the Federal Reserve and Bank of Japan as they kept their respective key rates on hold.

New Zealand’s Reserve Bank won’t review policy until next month, although governor Anna Breman will deliver a speech on monetary policy next week, where she’ll have to factor in a slower economy than expected after Statistics NZ’s gross domestic product figures fell short of forecasts.

Blue-chip stocks were the biggest drag on the NZX50 as Fisher & Paykel Healthcare, Auckland International Airport and Meridian Energy all declined, while Spark New Zealand posted the steepest decline as the telco also shed rights to an upcoming dividend.

Meanwhile, Turners Automotive Group was among the few highlights on the local bourse as the used car dealer and financier raised its earnings outlook ahead of an investor day next week.