The NZX 50 fell 115 points, or 0.9%, to 13,306 in morning trade on Wednesday, hitting its lowest level since December 17 and erasing gains from the previous session, as traders grew concerned about New Zealand's economy after the unemployment rate rose to its highest level in a decade. Fresh data showed that the jobless rate in New Zealand rose to 5.4% in Q4, higher than both the previous figure and market expectations of 5.3%. Caution was also built as traders anticipated US jobs data later this week and Chinese services PMI data due later today. The downbeat session on Wall Street overnight further pressured sentiment after a sell-off in AI- and semiconductor-related shares amid elevated chip valuations. Almost all sectors traded in the red, led by healthcare, industrials, and consumer staples. Among the biggest laggards were Fisher & Paykel (-1.9%), A2 Milk (-1.7%), Freightways (-1.7%), Auckland International Airport (-1.6%), Briscoe Group (-1.6%), and Mainfreight (-1.4%).

NZX 50 Drops to 7-Week Low after Jobs Data

The Ai Group Industry Index for Australia’s manufacturing sector remained in contraction in December/January, with overall manufacturing conditions still weak. Manufacturing trends were mixed, as subdued demand, tariffs, rising input and wage costs, weak cashflow and labour constraints continued to weigh on output, while limited pockets of improved orders offered only partial relief. The chemicals index fell sharply to -35.3 as seasonal slowdowns, market uncertainty and higher tariffs reduced sales. In contrast, minerals and metals improved to -25.9, supported by cheaper imported inputs and some lift in new orders, though softer holiday demand and export pressures persisted. The machinery and equipment index declined to -22.3 amid lower investment, higher costs, labour shortages and slower holiday orders, despite modest gains for some firms. Food, beverages and TCF eased to -9.4, with stronger festive-season sales offset by rising wage, input, energy and tax costs.

Australia Manufacturing Sector Deteriorates Further: Ai Group

The Ai Group Australian Industry Index edged up 0.2 points to -12.3 seasonally adjusted in December/January. The indicator has continued to recover through 2025, but activity remains mixed. Domestic demand remained subdued amid seasonal challenges, while economic uncertainty, rising input costs, regulatory pressures and labour shortages continued to weigh on activity, partly offset by stronger construction inquiries and improved conditions in metals and food industries. The employment index was broadly stable at -4.7, reflecting ongoing difficulties in securing suitable staff, with some firms scaling back operations and others holding vacancies amid persistent skill shortages. New orders improved in December/January, rising 4.1 points to -14.2 as the 2026 work pipeline began to flow through, while input volumes fell slightly to -15.7, contracting at a similar pace to November. Pricing indicators eased modestly, with both input and sales prices declining, while wages remained elevated.

Australian Industry Activity Improves: Ai Group

US crude oil inventories plunged by 11.1 million barrels in the week ended January 30th, 2025, extending a 0.25 million-barrel draw in the prior week. The decrease sharply contrasted with expectations for a 0.7 million barrel build to mark the sharpest decline since August 2023

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NZX 50 Drops to 7-Week Low after Jobs Data

Australia Manufacturing Sector Deteriorates Further: Ai Group

Australian Industry Activity Improves: Ai Group

US Crude Oil Inventories Drop the Most Since August 2023