Market commentaries

WELLINGTON: New Zealand shares rose yesterday as the further relaxing of global Covid19 restrictions bolstered investor confidence.

The S&P/NZX 50 Index advanced 138.94 points, or 1.3%, to 10,914.74. Within the index, 33 stocks rose, 16 fell and one was unchanged. Turnover was $136.6 million.

Investor sentiment was buoyed as more of the global economy opened up, clearing the way for a recovery from the economic damage left behind by Covid19.

Yesterday, Japan ended its nationwide state of emergency after new Covid19 cases slowed. The news pushed Japan’s Nikkei 225 up 2.2% in afternoon trading, leading a rally across Asia.

‘‘Economies opening up and getting back to normal business has really given markets a kicker today,’’ Craigs Investment Partners investment adviser Peter McIntyre said.

The positive news had pulled attention away from simmering tensions between China and the US; Beijing’s effort to exert more control over Hong Kong was the latest issue dividing the superpowers.

Tourism Holdings led the local market higher, jumping 10% to $1.54. The company yesterday began restructuring, a process likely to affect 140 of its about 900 New Zealand employees.

Kathmandu Holdings rose 5.1% to $1.04 with 4.8 million shares changing hands. The retailer had picked up momentum since it raised capital and had been able to progressively resume trading as restriction eased, Mr McIntyre said.

Casino operator SkyCity Entertainment Group was also set to benefit from further easing of social distancing. Its shares rose 3.6% to $2.57.

Air New Zealand rose 5.2% to $1.32 after detailing its financial position. While the airline confirmed it expected to report a loss this year, it said it had yet to fall back on the Government’s $900 million loan.

Auckland International Airport rose 5.7% to $6.32.

The Australian sharemarket enjoyed its best day in seven weeks, rallying alongside its peers in Asia.

The S&P/ASX200 benchmark index closed up 164.4 points, 2.93%, at 5,780 points, while the All Ordinaries index was up 160 points, or 2.79% higher, at 5,889.9.

The Australian dollar was buying 65.80 US cents, up from US65.24c on Friday. — BusinessDesk/AAP