Market commentaries

WELLINGTON: New Zealand shares joined the global rally in equity markets as the prospect of improving trade relations between the US and China lifted investor confidence. Pushpay Holdings led the market higher after getting a broker upgrade.

The S&P/NZX 50 index rose 21.77 points, or 0.2%, to 9270.76, a weekly gain of 1.9%. Within the index, 31 stocks gained, 14 fell and five were unchanged. Turnover was $133.6 million.

The local bourse followed global stock markets higher on optimism ministeriallevel discussions between US and Chinese officials will end the escalating trade barriers being imposed by the world’s two biggest economies. Japan’s Topix was up 0.9% in afternoon trading, and Hong Kong’s Hang Seng rose 0.7%.

‘‘The olive branch seems to have been extended by the US to China on trade,’’ Greg Smith, head of research at Fat Prophets, said.

‘‘Those talks will happen in the coming weeks and the market’s optimistic about that,’’ Greg Smith, head of research at Fat Prophets, said.

Pushpay led the local market higher, up 4.4% to $4.04 after the payments software developer was upgraded to a ‘‘buy’’ by a broker. The stock has gained 18% from a trough in August.

NZX rose 2.8% to $1.11. The stock market operator signed a memorandum of understanding this week with Nasdaq to explore ways of deepening their relationship.

Gentrack increased 2.3% to $7.11 and Comvita was up 1.8% to $6.10.

Summerset Group gained 1.3% to $7.80 after accepting more oversubscriptions than initially planned for a sevenyear bond. The retirement village operator raised $125 million, rather than $100 million.

Fonterra Shareholders Fund units fell 0.4% to $4.99 after conflicting analyst reports from FNZC and Forsyth Barr on how to interpret Fonterra’s review.

Tourism Holdings fell 2.2% to $5.40, the biggest decline on the day. Chorus slipped 1.6% to $4.79 and Spark New Zealand decreased 1.4% to $3.98.

Outside the benchmark index, TruScreen rose 2.1% to 24c after the cervical cancer test maker received a $450,000 order from Zimbabwe health officials and announced details for a $1 million offer to current investors via a share purchase plan.

NZME increased 1.5% to 68c after new substantial shareholder Renaissance Asset Management said the stock was undervalued, particu larly its digital classifieds businesses.

Among bluechip stocks, a2 Milk Co slipped 0.6% to $11.99, Air New Zealand rose 0.5% to $3.18, Auckland International Airport increased 0.1% to $6.995, Fletcher Building gained 0.8% to $6.37 and Mainfreight advanced 1.7% to $29.28.

A Australian shares finished higher yesterday, buoyed by improving global sentiment around trade, solid Chinese economic data and a bout of local buying by bargain hunters.

The benchmark S&P/ASX200 index closed 36.6 points, or 0.6%, higher at 6165.3 points yesterday, while the broader All Ordinaries index was up 36.4 points, or 0.58%, at 6276.3 points.

For the week — which also marks the 10th anniversary of the GFC — the benchmark index lifted 0.35%.

Pepperstone head of research Chris Weston said signs of constructive dialogue between the US and China had led to investor confidence in Asia, where almost all markets were higher yesterday. ‘‘You’re seeing a lot of that bearish, negative sentiment being unwound and we’re feeding off some of that optimism,’’ he said.

The benchmark has lost 2.4% since the beginning of September and had fallen for ten of the previous twelve sessions as trade war fears frayed nerves.

The Australian dollar remains around US72c but had its best week since January on the back of positive results on the share market combined with the strong August jobs report on Thursday and the easing in USChina trade tension.

It got a lift overnight when Turkey’s central bank hiked interest rates, boosting the lira and concerns about emerging markets to prompt some short covering in the Aussie, which has been sold as a hedge against such risks.

The Aussie was buying US72.01c at 4.30pm AEST, from 71.87c on Thursday.

Dalian iron ore climbed 3% on Thursday in reaction to the lower trade worries, lifting the materials sector on the ASX.

BHP was 1.6% higher at $31.82, while Rio Tinto was up 1.2% to $73.15.

The financial sector closed 0.5% higher as banks recovered from a tumultuous week affected by the latest hearings of the banking royal commission, with Westpac the strongest mover, up 0.7% to $27.76, while NAB was the weakest, up 0.2% to $27.35.

ANZ found itself the target of civil penalty proceedings from ASIC over allegations the bank breached its continuous disclosure obligations during a 2015 capital raising.

ASIC alleges that ANZ, which has already been charged with criminal cartel offences related to the raising, should have advised the market that the investment banks involved in the deal took up nearly a third of the shares in the placement.

The S&P/ASX200 closed up 36.6 points, or 0.6%, at 6165.3 points. The All Ordinaries was 36.4 points, or 0.58%, higher at 6276.3 points

The SPI200 futures index was up 43 points, or 0.7%, at 6174.0 points at 4.30pm AEST. — AAP/ Reuters