New Zealand’s benchmark S&P/NZX 50 index jumped over 1% to close at 12,690 on Monday, supported by gains in energy-related stocks, supported by rising oil prices amid escalating tensions in the Middle East. Channel Infrastructure NZ led the advance among energy stocks, climbing nearly 2%, while electricity generators Meridian Energy (+1.4%), Mercury NZ (+1.5%), and Contact Energy (+1.5%) also posted solid gains.
Still, caution lingered as Middle East tensions continued to weigh on risk sentiment, with Israel and Iran exchanging strikes over the weekend, and both nations vowing further retaliation. Meanwhile, markets digested better-than-expected Chinese retail sales data, which provided some support given China’s role as a major trade partner. However, weaker-than-forecast industrial output tempered the optimism. Domestically, a fresh PMI survey showed that the services sector remained deeply in contraction, with the latest reading marking the sharpest decline since June 2024.
