Investors go bargain hunting
The S&P/NZX 50 index increased 62.28 points, or 0.7 percent, to 8,806.04. Within the index, 32 stocks gained, 11 fell and seven were unchanged. Turnover was low at $73.9 million.
Stocks across Asia gained sharply after December jobs growth in the US was stronger than expected and after US Federal Reserve chair Jerome Powell said the Fed could be "patient" when assessing the need for more rate increases in 2019. Both factors helped ease concerns about a possible slowdown in global growth and the US economy in particular. The Dow Jones Industrial Average added 3.3 percent while the S&P 500 rose 3.4 percent and the Nasdaq ended 4.3 percent higher.
"The strong positive lead from the US on Friday night has led to a big sigh of relief in markets today," said Forsyth Barr broker Suzanne Kinnaird.
Asian share markets were also cheered after China's central bank announced an easing in policy on Friday, with 100 basis points of cuts to bank reserve requirements freeing up around $116 billion for new lending.
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