NZX50 falls for a 2nd day as bubbling crude prices stoke inflation fears

New Zealand’s S&P/NZX 50 index joined a broad decline across Asia as the conflict in the Middle East pushes up oil prices, raising concerns more expensive energy will feed inflation and prompt the Reserve Bank to move quickly to dispel any price increases.

Government bond yields on both sides of the Tasman followed US Treasuries higher, with Reserve Bank of Australia governor Michele Bullock telling the Australian Financial Review business summit that every policy meeting is a live one as the board considers the supply shock affecting energy markets.

Companies held for their reliable dividends, such as Auckland International Airport and Infratil, were among the major drags on the NZX50, as the prospect of higher rates eats into the relative attraction of those stocks held for their yield.

Meanwhile, Ryman Healthcare dropped after Forsyth Barr analysts cut their target price on the retirement village operator as they pared back their earnings expectations in mapping out what they saw as a credible return to outperformance for the company.