NZX50 slides to 7-month low as RBNZ walks narrow line on rates

New Zealand’s S&P/NZX 50 index was the worst performer across Asia as investors weighed up Reserve Bank governor Anna Breman’s balancing act in managing the inflationary impacts of the energy shock and drag on growth.

The yield on New Zealand’s 10-year government bond eased after Breman’s speech, joining a global rally in bonds, while finance minister Nicola Willis’s fiscally neutral support package for low-income families through the petrol price spike didn’t spook analysts.

The local bourse reversed earlier gains on optimism US President Donald Trump’s five-day pause on bombing Iranian energy infrastructure may lead to a ceasefire in the Middle East, with Air New Zealand and Tourism Holdings following global travel and tourism stocks higher.

Meanwhile, KMD Brands rallied after confirming it received an approach to spin out its Rip Curl business but dismissed it as not offering enough value to shareholders.