New Zealand’s S&P/NZX 50 index fell in a mixed day across Asia, with rate-sensitive commercial landlords among those weighing on the local bourse after strong US jobs growth and elevated oil prices stoked investors’ bets that the Federal Reserve will hike its benchmark rate this month.

South Korea’s Kospi was back on the rise as OpenAI’s latest ChatGPT model stoked optimism that artificial intelligence applications would keep driving demand for computing power.

Meanwhile, New Zealand’s listed power companies were a bright spot with Mercury NZ and Meridian Energy offsetting declines for blue chips including Infratil and Fisher & Paykel Healthcare.

And Bremworth tumbled after the board ended talks with rival Godfrey Hirst’s parent after major shareholders made it clear that the alternative bid to David Ferrier’s partial takeover wouldn’t fly.

Muted Monday

The NZX 50 fell 31.35 points, or 0.2%, to 13,942.83, with 29 stocks declining, 16 gaining and five unchanged. The S&P/NZX 20 index slipped 0.2% to 7,752.73, with the NZX 20 futures contract untraded.

Turnover across the main board was a modest $75.6 million, of which Fisher & Paykel Healthcare accounted for $7.8 million as it fell 1.2% to $44.30 in the biggest drag on the local market.

Stock markets across Asia were mixed, with South Korea’s Kospi surging 4.2% in late trading as tech stocks were buoyed by the prospect of a new OpenAI model boosting demand for computing power. Japan’s Nikkei gained 2.1% and Australia’s S&P/ASX 200 index was fractionally higher, while Hong Kong’s Hang Seng dropped 1% after Chinese authorities injected 300 billion Chinese yuan to recapitalise banks and insurers.

Meanwhile, the kiwi dollar fell to 58.75 US cents at 5pm in Auckland from 58.96 cents last week as stronger-than-expected US jobs growth last month stoked expectations the Federal Reserve would hike its benchmark interest rate later this month. Rising oil prices on elevated tensions in the Middle East added to global inflationary fears, with Brent crude futures up 1.1% at US$97.32 a barrel.

“The key theme for markets this week is whether incoming inflation data validates the increasingly hawkish Fed pricing that was reinforced by Friday's strong payrolls report,” Kiwibank financial markets senior dealer Mieneke Perniskie said in a note. “The major event will be the US CPI release, while the ECB policy decision will also be closely watched by markets.”

Rate sensitive commercial landlords were among the day’s decliners, with Stride Property Group falling 2.6%, or 3 cents, to $1.115 after the real estate firm shed rights to an upcoming dividend of 2 cents per stapled security, while Precinct Properties NZ declined 1.5% to 97 cents, Property for Industry decreased 1.3% to $2.28, Goodman New Zealand slipped 1.3% to $1.975 and Kiwi Property Group was down 1.1% at 91 cents.

Vulcan Steel posted the steepest decline on the day, falling 4.6% to $6.92, snapping a four-day rally last week.

Still on track

Port of Tauranga was unchanged at $8.25 after the country’s biggest port operator received fast-track approval for its Stella Passage development to extend its container berth and wharves. Napier Port Holdings rose 1.1% to $3.64, while South Port New Zealand fell 1% to $8.80.

Serko increased 0.6% to $1.62 after Forsyth Barr analysts reaffirmed their ‘outperform’ rating and target price of $2.48 after getting an early look at the travel software developer’s Serko.ai product.

“We exited the demonstration with increased confidence in both the product’s delivery timeline and the quality of its user experience,” analysts James Lindsay and Georgio Toulis said in a note to clients. “Serko.ai appeared polished following its US closed beta launch in May 2026, and management reiterated that a broader US open beta remains on track for 3Q27.”

Power companies rallied in a broadly stronger day for the energy sector on both sides of the Tasman. Meridian rose 0.6% to $5.38, while Mercury NZ advanced 1.8% to $6.78 and Contact Energy gained 0.9% to $8.75. Genesis Energy decreased 0.4% to $2.78.

Fonterra Shareholders’ Fund units posted the biggest gain on the day, up 4.4% at $7.81, while a2 Milk Co rose 2.3% to $8.17.

Outside the benchmark index, Bremworth dropped 9.9% to 68.5 cents after the carpetmaker said the board stopped engaging with Mohawk Industries’ Floorscape over a rival bid to David Ferrier’s partial takeover, due to the lack of support from major shareholders.

Rua Bioscience climbed 11%, or 0.4 of a cent, to 4 cents after the medicinal cannabis company said it moved to a direct-to-market model for its domestic operations.

Reporting by Paul McBeth.