NZ shares gain as upcoming Fed meeting bolsters yield stocks; Sky TV gains

The S&P/NZX 50 index rose 73.82 points, or 0.9 percent, to 8,762.19. Within the index, 32 stocks gained, 10 fell and eight were unchanged. Turnover was $148.4 million.

The local market outperformed Asia, where Australia's S&P/ASX 200 index was down 0.3 percent in afternoon trading, Singapore's Straits Times index rose 0.4 percent and Hong Kong's Hang Seng edged up 0.1 percent. Investors are awaiting the Federal Open Market Committee meeting, where chair Jerome Powell is expected to raise the federal funds rate for a fourth time this year, but dial back projections for increases next year.

Volatility in equity markets has been heightened as the Fed started raising interest rates more aggressively, offering investors an alternative to stocks.  A decade of near-zero rate policies had diminished the appeal of fixed income assets. New Zealand's market has remained relatively attractive given the high proportion of companies paying high dividends.

"There's a bit of growing optimism the Federal Reserve will come out with a slightly softer tone than last time," said Shane Solly, portfolio manager at Harbour Asset Manager. "We've had a very good day relative to other markets and that's because a lot of our stocks are good, solid, boring utilities."