The New Zealand stock market closed higher for the fourth straight trading session on Monday. After opening on a flat note, despite a positive lead from Wall Street, stocks extended their gains as markets across the Asia-Pacific region rallied for a fifth day on Monday. The benchmark NZX 50 index closed up 35.8 points or 1.3% at 2,856.6 and the broader NZX All Capital index gained 24.1 points or 0.8% at 2,892.9.
In the currency market, the New Zealand dollar strengthened against the greenback as firmer Asian stock markets boosted risk appetite. In late local deals, the kiwi was quoted at US$0.5921-0.5927 compared to Friday's close of US$0.5868-0.5874.
U.S. stocks finished higher on Friday, with the Dow Jones industrial average rising 1.6% to 9,325, the broader S&P advancing 1.5% to 968 and the tech-heavy Nasdaq gaining 1.3% to 1,721.
Oil rose above US$68 a barrel on Monday, reversing earlier losses of over US$1, as Asian stock markets climbed on signs of improvement in credit markets. At 11:53 p.m. ET, oil was quoted at US$68.9, up US$1.1, after the contract for December delivery closed up $1.8 at $67.8 a barrel on the New York Mercantile Exchange on Friday.
On the economic front, New Zealand workers' wages grew at a record pace in the third quarter, but growth in recruitment of additional workers slowed, according to Statistics New Zealand. The Labor Cost Index recorded an increase of 3.6% in salary and wage rates, including overtime, in the year to the September 2008 quarter. The increase was the highest since the data series began in the December 1992 quarter. On a quarter-over-quarter basis, the LCI rose 1.1%, after rising 0.8% in the previous quarter. The data also showed that employment as measured by full-time equivalent employees rose 1.6% in the year to September 2008, the smallest annual increase since March 2007.
There was little corporate news to digest, but investors remained cautious ahead of Saturday's election.
Among market leaders, Telecom jumped 3.8% and Contact Energy surged 4.1%, while Fletcher Building closed unchanged. Other gainers were Fisher & Paykel Appliances 7.4%, jeweler Michael Hill rose 4.4%, Sanford 3.6%, Air New Zealand 3.3%, SkyTV 2.8%, and New Zealand Oil and Gas 2.3%.
