(RTTNews) - New Zealand’s share market opened higher on Tuesday, following the big gains made overnight at Wall Street, where strong home sales data and a weaker dollar helped push U.S. stocks higher.

The benchmark NZX 50 index added 24.11 points or 0.77% to 3,137.09 shortly after the market opened for the day. Meanwhile, the broader NZX All Capital index surged 25.77 points or 0.82% to be at 3,158.40.

The New Zealand market closed essentially flat after a quiet day of trading on Monday. The benchmark NZX-50 index declined 0.7 points or 0.02 percent at 3,112.9. Trading volume was reported by the NZ Stock Exchange at 29.9 million shares valued at NZ$58.9 million. Advancers outnumbered decliners 51 to 39 with 30 unchanged.

Overseas, U.S. stocks rose by significant margins to open the holiday-shortened week on Monday, able to hold onto the bulk of their early gains. The major averages all closed in positive territory, with the Dow setting a fresh yearly high.

Initial gains among stocks came amid weakness in the U.S. dollar, which came following comments from St. Louis Fed President James Bullard, who indicated that the government may extend its mortgage backed security purchase plan past its expiration date in March.

Solidifying buying interest was a report from the National Association of Realtors, showing that existing home sales rose by more than anticipated in October. The strong sales growth was partly due to the first-time home-buyer tax credit, helping to drive the annual rate to its highest level since February of 2007.

Existing home sales jumped 10.1 percent to an annual rate of 6.10 million units in October from a downwardly revised 5.54 million in September. Economists had expected sales to rise to 5.70 million from the 5.57 million originally reported for the previous month.

In corporate news, the race to acquire U.K.-based confectionery maker Cadbury (CBY) heated up, with Kraft Foods (KFT) reportedly considering an increase in its bid to $16.3 billion. U.S. chocolate maker Hershey (HSY) and Swiss chocolate giant Nestle have also shown interest in Cadbury.

The major U.S. averages moved well off their highs over the course of the trading day but still posted strong gains. The Dow closed up 132.79 points or 1.3 percent at 10,450.95, the Nasdaq advanced by 29.97 points or 1.4 percent to 2,176.01 and the S&P 500 rose by 14.86 points or 1.4 percent to 1,106.24.

Crude oil finished modestly higher on the New York Mercantile Exchange on Monday, but backed off its daily high near $80 per barrel. Oil rose on a weaker dollar and concerns over political tensions in the Middle East. Light sweet crude for December delivery finished at 77.56 per barrel, up 84 cents on the session. Prices earlier reached as high as $79.92.

On the currency front, the New Zealand dollar was buying US73.29c by 8am on Tuesday, after touching a low of US72c by Monday noon. In comparison, the kiwi was buying US72.66c at 5pm on Monday.

In the early trading on the New Zealand stock market on Tuesday, market leader Telecom added 1.21%, while second ranked Contact Energy collected 0.17% and Fletcher Building, the third best stock, surged 2.20%.

In the retail sector, Hallenstein Glasson advanced 1.56%, jewelry retailer Michael Hill International surged 1.67% and Warehouse collected 1.23%, as Pumpkin Patch remained unchanged. Among energy stocks, TrustPower and Vector remained unchanged in the early trading.

Among the dual listed issues, AMP lost 0.62%, as Australia and NZ Banking Corp, APN News & Media, Lion Nathan, Telstra and Westpac Bank remained unchanged in the early trading on Tuesday morning.

Among other notable stocks, Infratil jumped 1.33%, Mainfreight collected 0.90%, Nuplex gained 1.21%, Sky City advanced 1.21% and Steel & Tube Holdings added 0.69%, as Methven, New Zealand Oil & Gas and Sky Network Television remained unchanged. Meanwhile, Fisher & Paykel Healthcare collected 0.62%, as Fisher & Paykel Appliances climbed 1.59%.

The early gainers included– Air New Zealand by 1.57%, AMP NZ Office Trust by 1.30%, Freightways by 1.61%, Goodman Property Trust by 0.97%, ING Property by 1.33%, PGG Wrightson by 4.48%, New Zealand Refining Company by 2.13%, Pike River Coal by 1.01%, Ryman Healthcare by 2.05%,

The early losers among the stocks listed under the NZX 50 index were few in the early trading on Tuesday, and included– Ebos Group by 0.84%, ING Medical Properties Trust by 0.83%, Rakon by 0.85% and Restaurant Brands NZ by 1.35%.

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Posted in Categories: Australia, New Zealand, Releases, Stocks, Switzerland, USA.

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