MARKET CLOSE: NZ shares join Asia rally on trade optimism; Fonterra loss dominates headlines

The S&P/NZX 50 index gained 53.42 points, or 0.6 percent, to 9,248.99. Within the index, 30 stocks rose, 15 fell and five were unchanged. Turnover was $153.1 million.

Stocks across Asia rose on reports US Treasury Secretary Steven Mnuchin extended an olive branch to his counterparts in China, inviting them to ministerial level trade talks.

Tensions between the world's two biggest economies increased volatility in financial markets as investors try to gauge the potential impact on global growth. Hong Kong's Hang Seng was up 1.5 percent in afternoon trading, while Japan's Topix rose 1.2 percent. China's Shanghai Composite Index increased 0.1 percent.

Fonterra's annual result kept local investors busy. The cooperative posted a loss attributable to shareholders of $221 million with all business units struggling. The new leadership team is reviewing the entire business and have pledged to reduce debt levels by $800 million. The Fonterra Shareholders' Fund, which gives external investors exposure to the cooperative's earnings, rose 0.8 percent to $5.01.