NZ shares dip as trade war fears linger

The S&P/NZX 50 index decreased 16.77 points, or 0.2 percent, to 8,792.93. Within the index, 28 stocks fell, 19 gained and three were unchanged. Turnover was smaller than usual at $80.3 million.

New Zealand's benchmark index followed Australia lower as comments by US vice president Mike Pence at the APEC leaders' meeting over the weekend kept investors nervous about the protracted trade dispute between the US and China. The world's two biggest economies have been at odds over the past 18 months, and investors are worried an economic slowdown will undermine company earnings. Australia's S&P/ASX 200 index was down 0.6 percent in afternoon trading.

Shane Solly, a portfolio manager at Harbour Asset Management, said New Zealand's market held up well, with the local economy still in reasonably good health. That means companies need to meet or beat earnings expectations to maintain their current pricing. The NZX's average historic price-to-earnings is 17 times.

"There's a little bit of volatility at a high level and companies reporting here which is taking people's attention," he said. "At an overarching level investors are still pretty wary about slowing activity and extended tariff discussion."