NZX 50 Gains for Second Straight Day on Fed Rate Hike

The NZX 50 index rose for a second consecutive day as investors welcomed the US Federal Reserve's interest rate hike. The rate increase reassured bond traders that central banks are taking inflation pressures seriously.

Heavyweight companies, including Meridian Energy and Auckland International Airport, underpinned the NZX 50's gain ahead of quarterly rebalancing on Friday.

The kiwi dollar rallied from a two-month low against the greenback after Statistics New Zealand figures showed the economy grew at a faster pace than expected in the June quarter. The NZD/USD exchange rate rose to 57.28 US cents at 5pm in Auckland.

Infratil rose for a second day, up 1.4% at $14.30, after Forsyth Barr analysts reaffirmed their 'outperform' rating and $20 target price on the infrastructure investor.