NZ shares rise after global surge

File photo / Paul Estcourt

The New Zealand sharemarket started the day strongly in the wake of a surge in global markets as conviction grows that central banks will do even more to boost struggling economies worldwide.

Around 10.15am the benchmark NZX-50 index was up 19.49 points or 0.6 per cent to 3237.81, after yesterday losing 10.6 points on the day the key New Zealand Institute of Economic Research quarterly business opinion survey showed businesses turning pessimistic in the September quarter after a year of sustained optimism.

Overnight, the Bank of Japan lit the fuse for markets when it unexpectedly cut rates closer to zero and said it would pour money into the markets through asset purchases. The move came as the US Federal Reserve is increasingly expected to stimulate the world's largest economy in a similar fashion.

"The thinking today is that the printing of money is going to take place," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

"The short term impact of that is to drive asset prices higher. We've seen it almost across the board in commodities."

Early movements in this country included Fletcher Building, up 8c to $8.15, Port of Tauranga, up 7c to $7.04, The Warehouse up, 5c to $4.00, Sky TV, up 4c to $5.04, Nuplex, up 4c to $3.25, and Hallenstein Glasson, up 4c to $4.21.

Natural Healthcare company Comvita lost 6c early to $1.95, after reporting first half sales down to about $36.5 million from $40.1m the year before.

Miner OceanaGold lifted 3c to $5.05 after the lifting of a trading halt following the completion of a book build raising gross proceeds of $C115.5 million ($151.8m).

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In the United States, stocks rallied to a nearly five-month high, with the Dow Jones industrial average gaining 1.8 per cent to 10,944.72, the Standard & Poor's 500 Index rising 2.1 per cent to 1160.75, and the Nasdaq Composite Index jumping 2.4 per cent to 2399.83.

US equities were helped by data showing the pace of growth in the US services sector accelerated more quickly than forecast in September, while hiring also picked up.

- NZPA