New Zealand shares ended lower on Tuesday as investors braced for a possible intensified US-Iran conflict after the Iran-aligned Houthis said they would impose a naval blockade on Saudi Arabia.
The S&P/NZX 50 Index fell 0.29% or 40 points to close at 13,656.03.
The Houthis, Yemen's Iran-backed militant group, announced a naval blockade of Saudi Arabia on Monday, a move that risks drawing Riyadh into the broader US-Iran conflict and adding further pressure on global energy markets and shipping lanes, according to a Monday Reuters report.
New Zealand and the Philippines have established a comprehensive partnership, New Zealand Foreign Minister Winston Peters said on Tuesday, according to a Tuesday Reuters report.
In domestic news, New Zealand's annual consumer inflation increased by 4.1% in the June quarter, up from a 3.1% increase in the 12 months to the March quarter, data from Stats NZ showed.
Further, the signal on underlying inflation in New Zealand's June quarter consumer price index (CPI) data was mixed and isn't likely to budge the Reserve Bank of New Zealand (RBNZ) from its policy stance, with the trimmed mean and weighted median measures accelerating, but the ex-fuel and energy measure slowing, ANZ said in a note.
In corporate news, Contact Energy (ASX:CEN, NZE:CEN) said retail mass-market electricity and gas sales increased year-on-year in June, alongside a rise in wholesale contracted electricity sales.
AFT Pharmaceuticals' (ASX:AFP, NZE:AFT) Scomara topical cream intended for the treatment of facial angiofibromas in tuberous sclerosis received a tentative approval from the US Food and Drug Administration.