New Zealand shares fell 94 points, or 0.7%, to 13,864 in Friday morning trading, extending the previous session’s losses. The move followed an overnight decline on Wall Street, driven by rising oil prices that strengthened expectations the US Federal Reserve could raise interest rates at its upcoming meeting.
Investor sentiment was further restrained ahead of key data releases: China’s trade figures and US employment data due later today, as well as China’s inflation numbers scheduled for Sunday. Higher oil prices also fueled inflation concerns at home, bolstering expectations that the Reserve Bank of New Zealand will move to increase interest rates.
Energy, healthcare, consumer staples, and industrial stocks led the market lower. Notable early decliners included Auckland International Airport (-2.1%), A2 Milk (-2.1%), Fisher & Paykel (-2.1%), Channel Infrastructure (-0.9%), and Smart Healthcare (-0.8%).
Despite the day’s weakness, the benchmark index remains on track for a 1.2% gain for the week, rebounding after a decline in the previous week.