New Zealand shares fall as hopes of early Fed rate cut fade; Australia closed

New Zealand shares fell for a third session on Monday, led by healthcare and energy stocks, after stronger-than-expected US jobs data prompted investors to dial down bets of an early rate cut by the Federal Reserve.

The benchmark S&P/NZX 50 index had declined 0.7% to 11,778.22 by 0052 GMT. Markets in Australia were closed for a public holiday.

Data released by US Labour Department on Friday showed that the world’s largest economy generated 272,000 jobs in May, well above the 185,000 jobs analysts had forecast.

Although the stronger-than-expected report suggested that the US economy was robust, it triggered worries among investors that the Fed might wait longer to cut interest rates.

In New Zealand, most stocks and sub-indexes were in negative territory.

Shares in Tourism Holdings dropped as much as 6.08% and were the top percentage losers on the benchmark index.

Shares of healthcare firm Ebos Group fell as much as 1.8% to their lowest level since May 31.

Software firm Vista Group declined as much as 3.1%.

Australian shares fall as financials and healthcare stocks drag

Electricity generating firm Contact Energy fell 2.1% to its lowest since May 30, while Meridian Energy, the country’s largest renewable energy generator, slipped 0.9%.

New Zealand’s government on Sunday said it would introduce legislation to remove a controversial ban on offshore petroleum exploration to attract investment to the country’s oil and gas sector.