New Zealand shares outperformed much as Asia as investors digested the impact of US President Donald Trump’s Liberation Day tariff regime.
The S&P/NZX 50 index increased 18.38 points, or 0.2%, to 12,338.57, faring better than many of its peers with New Zealand being slapped with a 10% reciprocal tariff by the new US trade policy. Australia’s S&P/ASX 200 index fell 1.1% in late trading, while Japan’s Nikkei 225 index slid 3.2% and Hong Kong’s Hang Seng declined 1.7%.
Trump imposed a baseline 10% tariff on all trading partners in an executive order coming into effect on April 5, with reciprocal tariffs as high as 50% for Lesotho. China – a major trading partner for New Zealand and Australia – was slapped with a 34% reciprocal tariff, on top of the existing 20% import levy imposed over the fentanyl trade.
“It’s a problem. It’s stagflationary,” said Matt Goodson, managing director at Salt Funds Management. “The higher inflation part ties central banks’ hands to some degree in terms of lowering rates.”
The New Zealand dollar traded at 57.36 US cents at 5pm in Auckland from 57.35 cents at 7am and 57.21 cents yesterday.
Fisher & Paykel Healthcare, which has manufacturing in Mexico, fell as much as 7.1%, ending the day at $35.20, up 0.3%, as investors tried to weave their way through the new global trade order.
The medical devices maker said the new tariff regime will increase costs in its March 2026 year and may slow the return to its target gross margin range.
Global logistics group Mainfreight declined 1.6% to $61.62, while rubber goods maker Skellerup slipped 2.9% to $4.68 and winemaker Delegat fell 0.2% to $4.34.
Taking it higher
Vital Healthcare Property Trust led the benchmark index higher, rising 3.6% to $1.75, while Stride Property advanced 2.7% to $1.16 and Kiwi Property Group increased 2.3% to 89 cents.
Power companies were broadly stronger, with Contact Energy up 1.3% at $9.08 and Mercury NZ increasing 1.1% to $5.75. Genesis Energy advanced 0.7% to $2.18, while Meridian Energy fell 1.1% to $5.77.
Cinema software analytics firm Vista Group International gained 2.2% to $3.68, and utilities software developer Gentrack rose 2.6% to $11.28.
Tourism Holdings posted the biggest decline on the NZX50, falling 3.9% to $1.73.
NZX was unchanged at $1.60 after its March operating metrics showed a 43% increase in the total value traded on stock market last month at $4.37 billion. The total value so far this year has climbed 52% from a year earlier.
Synlait Milk advanced 2.8% to 77 cents after the milk processor said the majority of cease notices have been withdrawn and it has enough milk volumes for the next two financial years.
Reporting by Paul McBeth. Image from Photo by Chitundu Phiri on Unsplash.