2026.02.0322:49:13UTC+00NZX 50 Drops to 7-Week Low after Jobs Data

The NZX 50 saw a decline of 115 points, or 0.9%, reaching 13,306 during morning trade on Wednesday. This marked its lowest level since December 17, effectively wiping out the gains achieved in the previous session. The drop was fueled by rising concerns over New Zealand's economic performance, following an increase in the unemployment rate to its highest level in a decade. Recent statistics revealed that New Zealand's jobless rate rose to 5.4% in the fourth quarter, surpassing both the previous quarter's figure and the market's forecast of 5.3%. Additionally, traders remained cautious ahead of upcoming US employment data later this week and Chinese services PMI data expected today. Sentiment was further dampened by a lackluster session on Wall Street overnight, attributed to a sell-off in AI and semiconductor-related stocks due to high chip valuations. Most sectors experienced losses, with healthcare, industrials, and consumer staples leading the downturn. Notable decliners included Fisher & Paykel, which dropped 1.9%, A2 Milk and Freightways, both falling 1.7%, along with Auckland International Airport, Briscoe Group, each down 1.6%, and Mainfreight, declining 1.4%.