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New Zealand shares rose more than 2 per cent yesterday as global markets got a boost from a rebound on Wall Street.
Fallout from the collapse of the US sub-prime mortgage market had knocked $5.4 billion - nearly 10 per cent - off the NZX-50, which suffered its sixth consecutive fall on Friday.
But the market recovered 2.26 per cent yesterday, rising 88 points to 3982.37.
The rise came after the US Federal Reserve on Friday (US time) reduced the interest rate it charges banks, taking the pressure off debt markets and sparking a 1.82 per cent jump in the Dow Jones industrial average.
Among the top stocks, Telecom was up 7c to $4.16, Fletcher Building surged 19c to $11.34 and Sky TV put on 19c to $5.50
Grant Williamson, a partner with Hamilton, Hindin, Greene, said despite the NZX rise, most investors expected that the volatility was not over. Other markets around the world also rose yesterday in response to the US Fed's move.
The Australian sharemarket jumped 4.6 per cent in its biggest one-day gain in 10 years. CMC Markets senior dealer Josh Whiting said the ASX had a "crazy" day.
In Asia, stocks jumped the most in a year.
-Agencies
