(RTTNews) - The New Zealand stock market closed higher Monday following a decisive win for the opposition National Party in Saturday’s general election. Wall Street’s rebound on Friday, a Chinese economic stimulus package, and firmer Asian markets boosted investor sentiment. The benchmark NZX 50 index closed up 46.2 points, or 1.7%, at 2,837.8, ending a two-session losing streak, and the broader NZX All Capital index rose 39.0 points or 1.4% to close at 2,856.2.

In the currency market, the New Zealand dollar closed stronger against the greenback. The kiwi finished the session at US$0.5967, after rising as high as US$0.6008, down from US$0.5973 in early trade. The local unit closed Friday’s domestic at US$0.5868.

In the U.S., stocks rose on Friday as bargain hunters scooped up shares at multi-year lows after a big drop in the October payrolls was less dire than feared. The Dow Jones industrial average climbed 2.9% to 8943.8, the S&P 500 Index advanced 2.9% to 930.9, and the Nasdaq Composite Index shot up 2.4% to 1,647.4.

Oil prices rose above $63 a barrel on Monday, fueled by top exporter Saudi Arabia’s plans to cut December supplies to Asia, a weaker dollar, and hopes that global economies’ plans to lift growth would avert recession. At 00:53 a.m. ET, oil was quoted at $63.45 a barrel, up $2.41 or 3.95%.

On the economic front, house prices in New Zealand declined 6.8% in the full year to October, according to the Quotable Value government agency in a report on Monday. The October decline follows drops of 5.8% in September and 4.5% in August. The report indicated the slowdown reflected a cautious market combined with the tight spending of a recession. QV said the average sale price for houses in New Zealand remained flat at NZ$379,290.

Among market leaders, Telecom surged up 6.6% and Fletcher Building rose 1.4% on hopes that it would benefit from infrastructure spending. Contact Energy closed little changed.

Hallenstein Glasson gained 1.8%, but New Zealand Oil & Gas lost 0.8% and Pike River Coal dropped 1.7%. Sky City advanced 2.2%, but Tourism Holdings closed unchanged.

Mainfreight rose 1.2%, Fisher & Paykel Healthcare jumped 3.0%, and Sanford climbed 1.3%, while Renaissance plunged 4.3% on the back of a profit warning.

Infratil advanced 1.6%, Nuplex gained 1.9%, Ebos Group climbed 2.6%, and Goodman Fielder rose soared 6.1%.

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Posted in Categories: Economy, New Zealand, Releases, USA.

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