NZ market finishes day higher

By AARON LIM - BusinessDay.co.nz | Thursday, 02 October 2008

The New Zealand sharemarket finished the day up 1.38 per cent after news of the US Senate bailout vote, one of the few markets to stay in positive territory. 

The NZX 50 index finished the trading day up 44.679 points, at 3232.64.

 Leading stock Telecom was up 13c to $2.95, with Fletcher Building adding 4c to $7.20.

 Rakon ended the day up 7c to $2.390, while SkyTV was up 16c to $4.40.

 Contact Energy gave up earlier gains to finish the day down 6c at $7.88.

In an ominous sign of falling confidence, other stock markets in the Asia Pacific region went into reverse even after the US Senate voted 74 to 25 in favor a US$700 billion bailout plan of the financial system.

"It's not just that particular [bailout] bill anymore, but the outlook for the global economy, which looks pretty awful," Jason Wong, director of strategy at First NZ Capital said.

In Australia, the benchmark ASX/S&P 200 index fell 0.4 per cent to 4773 after the US vote. After a flat start to the day, the Australian index had inched into positive territory, reaching 4,832 just before the Senate vote.

The Japanese stock market continued its downward momentum, slipping another 1.1 per cent, with concerns over the fate of the global economy overshadowing news of the bailout.

On Wednesday, the Bank of Japan's quarterly Tankan survey showed sentiment among big manufacturers turning negative for the first time in five years.

The Nikkei average index fell 125 points to 11,242.65 late in the session, with the Topix down 1.7 per cent to 1,082.72.

The MSCI index of Asia-Pacific stocks outside Japan fell 0.7 percent, erasing a modest gain immediately before the US Senate vote.

 Markets around the world will anxiously watch Wall Street's reaction to the vote tonight.

Questions about whether the U.S. House of Representatives will now approve the revised $700 billion rescue plan for the financial system also remain, after their unexpected rejection of an initial package on Monday sent global markets reeling.