The New Zealand stock market closed lower on Friday, extending its losses for the third consecutive trading session. The market started off firm after Wall Street finished mixed overnight, but lost ground in late trade as the stock markets across the Asia-Pacific region plunged amid fears that an economic slowdown is hurting corporate earnings in the third quarter. The benchmark NZX 50 index closed down 28.79 points or 1.03% at 2,778.55 ahead of the Labor Day holiday on Monday. The broader NZX All Capital Index shed 25.87 points or 0.90% to 2,835.18.
In the currency market, the New Zealand dollar closed weaker going into the long holiday weekend, as investors continued to shun risky assets. The kiwi finished the domestic session at US$0.5855, up from US$0.5802 in early trade, but down from US$0.5904 late Thursday.
U.S. stocks finished Thursday's choppy session mixed as investors reacted to a great deal of corporate earnings reports combined with a mixed jobless claims report and a disappointing housing report. While the Dow closed up 172 points or 2.0% at 8,691 and the S&P 500 advanced 11 points or 1.3% to 908, the Nasdaq closed down 11.8 points or 0.7% at 1,603, a new five-year closing low.
Oil held steady above $67 a barrel ahead of an OPEC emergency meeting later in the day. At 1:08 a.m. ET, oil was quoted at $67.51 a barrel, down 33 cents. Light, sweet crude for December delivery rebounded Thursday by $1.09 to settle at $67.84 a barrel on the New York Mercantile Exchange.
On the economic front, investors had little reports to digest on Friday.
Top stock Telecom gained 2.2%, while contact Energy lost 2.4% and Fletcher Building fell 3.3%.
New Zealand Oil and Gas jumped 3.4% ahead of its annual meeting next week, while the stock market operator NZX advanced 1.9% after it reported a 20% increase in net profit.
The New Zealand Refining Co rose 1.7% after it said that its refinery had been running at near full production, but Port of Tauranga closed unchanged despite the company reporting a strong first quarter at its annual meeting Thursday.
