NZX 50 gains as US-Iran tensions subside, exporters rally

New Zealand’s S&P/NZX 50 index rallied on Monday, with exporters such as a2 Milk Co and Fisher & Paykel Healthcare underpinning gains as they benefitted from a weak currency amid divided expectations the Reserve Bank will hike interest rates next week.

Stock markets across Asia were broadly stronger as the latest easing of tensions between the US and Iran capped gains for oil prices, while South Korea’s Kospi and Japan’s Nikkei were knocked by the Bank for International Settlements joining growing unease about the pace of investment in artificial intelligence.

Vulcan Steel led the NZX 50 higher after Forsyth Barr analysts raised their rating on the metals company to ‘outperform’, calling the recent slump in price an attractive entry.

And Forsyth Barr officially launched its dedicated capital markets business, headed by Carl Blanchard, to be run independently of the wealth management and focus on strong relationships with corporate and institutional investors.