New Zealand’s benchmark S&P/NZX 50 index closed 0.6% higher at 12,497 on Wednesday, tracking a rise in Wall Street as traders cheered news of a meeting between the U.S. and China.
Top officials from both sides are scheduled to meet this weekend in Switzerland to de-escalate trade tensions.
Meanwhile, investors are now awaiting the U.S. Federal Reserve’s policy decision later today, along with remarks from Fed Chair Jerome Powell.
On the domestic front, New Zealand’s unemployment rate held steady at 5.1% in the first quarter, but better than forecasts of 5.3%, while employment rose by 0.1%, matching estimates.
However, other indicators pointed to a soft labor market, with wage growth slowing faster than expected.
In corporate news, Contact Energy received regulatory approval to take over Manawa Energy in a $1.9 billion deal.
Contact Energy shares fell 1.6%, while Manawa Energy surged 27.6%.