New Zealand’s share market joined a decline across Asia as investors weigh up the impact of a new Chinese artificial intelligence-startup’s ability to shake up the burgeoning industry and the supporting billions of dollars of investment in AI infrastructure.
The S&P/NZX 50 index fell 24.98 points, or 0.2%, to 12,999.72 in relatively quiet trading with Auckland on holiday for its anniversary weekend while Australian markets were closed for the Australia Day public holiday. Turnover was $41.7 million on the main board.
Markets across Asia were generally weaker, following a softer lead from Wall Street on Friday, with tech stocks feeling the pinch more keenly as investors pay close attention to Chinese AI-startup DeepSeek, whose operating model is said to rival the performance of Open AI’s ChatGPT.
“While it remains to be seen if DeepSeek will prove to be a viable, cheaper alternative in the long term, initial worries are centred on whether US tech giants’ pricing power are being threatened and if their massive AI spending need re-evaluation,” IG market strategist Yeap Jun Rong said in a note.
Japan’s Nikkei 225 index was down 0.3% at 5pm in Auckland and Singapore’s Straits Times Index declined 0.1% while Hong Kong’s Hang Seng advanced 1%.
Local tech stocks were generally weaker. Eroad fell 2.8% to $1.05, ikeGPS declined 1.7% to 57 cents, Gentrack slipped 0.7% to $12 and Vista Group International decreased 0.3% to $3.15, while Serko advanced 1.3% to $3.83 and TradeWindow was unchanged at 21 cents.
Rakon, which sees AI as an expanding opportunity for its high-tech components, rose 1.7% to 61 cents.
Infratil, which counts Australian data centre operator CDC as its biggest investment, fell 0.4% to $11.62.
Calling all digital nomads
Separately, New Zealand’s government today announced looser working holiday visa rules for remote work based overseas to attract “digital nomads”.
Air New Zealand rose 0.8% to 61 cents and SkyCity Entertainment Group gained 0.7% to $1.41 while Auckland International Airport declined 2.2% to $8.59 and Tourism Holdings dipped 0.5% to $1.99.
Genesis Energy led the benchmark index lower, falling 2.2% to $2.25.
Sky Network Television was unchanged at $2.99 – a five-year high on an adjusted basis – after saying it’s weighing up the cost and revenue impacts of its preferred satellite option, which will be in the same orbital slot as its existing Optus D2 Satellite supplier. It will provide more detail when it reports its first-half earnings, but will treat the impacts as one-offs and exclude them from its adjusted annual guidance.
Pacific Edge was unchanged at 5.8 cents on a large volume of 5.9 million after saying its Medicare coverage has been extended by two months in an off-schedule update. It’s fighting to overturn the decision to exclude its Cxbladder from the programme’s coverage from Feb 23.
Fisher & Paykel Healthcare posted the biggest gain on NZX50, rising 1.9% to $39.13. The Wall Street Journal reported that advisers to US President Donald Trump are pushing for tariffs to be imposed on Mexico and Canada as early as Saturday.
Trump announced emergency tariffs to be imposed on Columbia on Sunday in the US after the Latin American nation turned away two military planes carrying deported migrants as part of his administration’s crackdown on immigration.
The greenback rallied on news of the Columbian tariffs, with the kiwi trading at 56.90 US cents at 5pm in Auckland from 57.12 cents at 7am and 57.05 cents last week.
The kiwi traded at 4.1329 Chinese yuan from 4.1397 yuan last week after Chinese manufacturing showed activity unexpectedly shrank in January.
Reporting by Paul McBeth. Image from Nguyen Dang Hoang Nhu on Unsplash.
