NZ shares up 1.1%, Australian and Asian markets also rise

UPDATED 3.30pm: The New Zealand sharemarket has strengthened during the day, with the benchmark NZX50 up 1.1%, or 37 points, to 3253 in late trade.

In light trading of $58 million, there were 46 rises and 33 falls. Leading the pack was Smith City which rose6.25% to 34c.

Australia's S&P 200 extended early gains to be up 1.9%.

Japan's Nikkei has risen 1.5% in early trade while the Hang Seng was up just over 2%, both following Wall Street's positive Friday lead.

UPDATED 12.30pm: The Australian sharemarket has opened the week strongly, eclipsing the modest NZX gains.

The ASX/S&P 200 was up 1.8% in early trade, while the NZX 50 had given up some early strength to be trading up 9%.

The strength in both markets is on the back of Wall Street's positive Friday close.

The benchmark NZX50 index rose 1% in early trade, following Friday's gains on Wall St.

There were 28 rises and 20 falls in the first hour of local trade, on moderate volume of almost $30 million, which saw the index gain 31 points to sit at 3217.

The biggest early risers were Smith City, NZX (which this morning released an improved interim result), Fisher and Paykel Healthcare and Restaurant Brands.

Pacific Edge, Allied Farmers and Oceana Gold suffered the biggest percentage falls.

The increase in market volatility over the past couple of weeks is a timely reminder that the global economic recovery will be slow and gradual, and that the sovereign debt issue will cause markets to become unsettled from time to time, Forsyth Barr analysts said in their weekly market wrap.

"We believe the NZ and Australian equity market fundamentals are at attractive levels and any ongoing weakness in the equity markets over the coming weeks would provide good buying opportunities for blue chip Australasian equities," they said.

NBR staff
Mon, 15 Aug 2011

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NZ shares up 1.1%, Australian and Asian markets also rise