FX.co ★ New Zealand Stocks Rally on RBNZ Rate Hold and Bargain Hunting

The NZX 50 jumped 215 points, or 1.7%, to finish at 13,247 on Wednesday, ending a three-day losing streak after the Reserve Bank of New Zealand left interest rates unchanged, as widely expected. Policymakers signaled confidence that inflation will move toward the 2% midpoint of the target band within a year, pointing to spare capacity in the economy, modest wage growth, and core inflation already sitting within the target range.

Bargain hunting also supported the rebound after the index hit a four-month low on Tuesday, weighed down by a pickup in January food inflation and softer service-sector activity amid adverse weather conditions. Sentiment was further buoyed by firmer U.S. equity futures following modest gains on Wall Street, ahead of the release of the Fed’s meeting minutes later in the day and PCE Price Index data in the coming days.

Gains were broad-based across sectors, led by healthcare, financials, and consumer non-durables. Market heavyweight Fisher & Paykel Healthcare rose 3.1%, while notable performers included Gentrack Group (up 5.7%), EBOS Group (3.9%), Property for Industry (3.2%), and A2 Milk Co. (2.6%).