FX.co ★ NZX Erases Losses, Posts 2nd Weekly Gain

New Zealand shares edged up 29 points, or 0.2%, to finish at 13,854 on Friday, recovering from early losses and adding to gains from the previous session. The move followed an advance on Wall Street overnight, as softer US inflation data reduced expectations of a Federal Reserve rate hike at the September meeting. Moderating oil prices further supported risk appetite by easing inflation concerns and bolstering speculation that the RBNZ may slow the pace of monetary tightening.

Sentiment was also underpinned by domestic data showing New Zealand’s manufacturing sector expanded for the 21st straight month in July, albeit at a slower pace. Still, traders remained cautious ahead of next week’s food inflation figures and China’s interest rate decision.

Gains were led by energy, technology, consumer discretionary, and industrial stocks. Notable movers included Colonial Motor, up 9.2%, ANZ Group, up 1.6%, Henderson Far East Income, up 1.2%, and Mainfreight, up 1.1%. On a weekly basis, the index added 0.2%, posting its second consecutive weekly advance.