New Zealand: Shares fall after hot US CPI data; Australian markets closed

NEW Zealand shares fell nearly 1.5 per cent on Monday and were on track for their biggest drop in two years, after hot US inflation data raised worries that the Federal Reserve might stay hawkish for a long time.

The benchmark S&P/NZX 50 index declined as much as 1.4 per cent to 10,983.85, extending losses to a third session and heading for its biggest drop since June 2020.

About 2 million share change hands in early trade, compared with the 30-day average of 31.3 million shares.

Markets in Australia were closed for a holiday.

Investors expect the Federal Reserve to raise policy rate at its meeting this week after data showed US inflation accelerated to its fastest level in 40 years in May.

Mining company Chatham Rock Phosphate led gains on New Zealand’s benchmark stock index, rising 3.8 per cent. Rua Bioscience and Restaurant Brands New Zealand climbed 3.1 per cent and 2.9 per cent, respectively. REUTERS