New Zealand Shares Set to Log Second Straight Weekly Drop
The NZX 50 index dropped by 160 points, equivalent to a 1.3% decline, reaching 12,042 during Friday morning trading. This downturn effectively erased the gains from the previous session, spurred by a significant sell-off on Wall Street on Thursday, driven by escalating tensions in the US-China trade dispute. The White House announced that tariffs on Chinese imports have now escalated to 145%, following President Trump's remarks a day earlier. Trump indicated that China—New Zealand's largest trading partner—would be subjected to "reciprocal" tariffs of 125% in retaliation to its countermeasures against U.S. duties. Anticipation also heightened in advance of China's March trade figures, set to be released over the weekend, as there is growing concern that the ongoing tariffs could adversely affect both exports and imports. The NZX 50 is poised for its second consecutive weekly decline, registering approximately a 1.5% decrease thus far. Some losses were mitigated by expectations of further rate cuts this year, following the Reserve Bank of New Zealand's recent 25 basis point reduction in response to muted inflation. The downturn was primarily influenced by a decline in consumer, healthcare, and producer manufacturing sectors, with notable decreases in Ebos Group (-5.3%), Auckland International Airport (-2.3%), AFT Pharmaceuticals (-2.2%), and Serko Ltd. (-1.4%).
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