New Zealand shares gained as growing expectations of lower interest rates stoked demand for companies offering regular dividend income, such as Chorus and Meridian Energy. Dairy companies A2 Milk Co and Synlait Milk were boosted by stronger demand for dairy products.
The S&P/NZX 50 index rose 59.79 points, or 0.7 per cent, to 9,133.51. Within the index, 27 stocks gained, 14 fell and nine were unchanged. Turnover was $116.9 million.
Stocks across Australia and New Zealand gained as investors increased their bets on both central banks cutting interest rates, boosting the attraction of equities over fixed-income assets such as bonds and term deposits.
Reserve Bank of Australia governor Philip Lowe yesterday opened the door to a rate cut in a speech, while weaker than expected jobs data reignited speculation New Zealand’s central bank will lean towards a cut. The S&P/ASX 200 index was up 1.3 per cent in afternoon trading.
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