Rate-sensitive Ryman, property stocks shrug off elevated inflation

New Zealand’s S&P/NZX 50 index rallied late in the day to end the session in the green as interest rate-sensitive companies such as Ryman Healthcare, Kiwi Property Group and Property for Industry shrugged off an elevated headline inflation reading, with the Reserve Bank’s core measure easing in the March quarter.

The kiwi dollar and swap rates rose after the Statistics New Zealand figures showed consumer prices rose more than economists predicted in the first three months of the year, while the NZ Institute of Economic Research’s quarterly business survey showed a slump in firms’ confidence.

Stocks across Asia were broadly stronger, with South Korea’s Kospi hitting a new record as artificial intelligence-linked tech stocks rallied, while NZX-listed Infratil climbed after saying its CDC datacentres arm has won an investment grade credit rating from Moody’s Ratings. 

Meanwhile, the Kalshi prediction market is still pricing better-than-even odds of prime minister Christopher Luxon leaving office this year after he won a confidence vote on his leadership in an effort to quell discontent in his caucus over the National party’s polling that’s driven speculation of a challenge in recent weeks.