NZ shares rise as optimism over US-China trade deal lingers; Fletcher gains

The S&P/NZX 50 index increased 54.81 points, or 0.6 percent, to 8,793.17. Within the index, 28 stocks gained, 17 fell, and five were unchanged. Turnover was $150.6 million.

Stocks across Asia rallied for another day on growing optimism US President Donald Trump and his Chinese counterpart Xi Jinping will overcome their trade dispute, which threatens to weigh on global growth. UK Prime Minister Theresa May's successful vote to keep the leadership also supported investor sentiment. Australia's S&P/ASX 200 index was up 0.3 percent in afternoon trading, while Hong Kong's Hang Seng gained 1.3 percent.

"We've seen a lot of uneasiness overnight in regard to Theresa May - she got the vote of confidence, if you can say that," said Peter McIntyre, an investment adviser at Craigs Investment Partners. "Trade tensions eased and it's given the market some relief and there's been a sea of green across Asia today."

Fletcher Building led the market higher, up 4.5 percent to $4.91, a three-week high, on slightly busier volumes than usual of 1.7 million. A notice to the NZX yesterday showed Australian fund manager Perpetual increased its stake in the building company to 11 percent. The stock is also coming off a 14-year low in November, and an announcement on the sale of the Formica international business is expected in coming weeks.