Asia
New Zealand Shares Fall; Fonterra Co-operative Group Lowers Farmgate Milk Price Forecast for 2026 to 2027 Season
New Zealand shares ended lower on Monday as most Asian markets struggled after renewed US-Iran hostilities.The S&P/NZX 50 Index fell 0.45% or 62.47 points to close at 13,723.20.The Islamic Revolutionary Guard Corps issued a statement on Sunday declaring the Strait of Hormuz closed, although US CENTCOM said the strait is open to all vessels seeking to lawfully transit the international waterway, according to a Monday report from Reuters.In domestic news, New Zealand's services sector returned to growth in June as activity rebounded, but weak consumer demand and cost pressures continued to weigh on the recovery, according to a statement by BusinessNZ.Also, the pace of increases for supplier costs for food supermarkets in New Zealand was little changed in June, Infometrics said.Further, New Zealand's central bank raised interest rates by 25 basis points to 2.50% at its July meeting, partly to prevent further easing in financial conditions and support the Kiwi dollar, Rabobank said.In corporate news, Fonterra Co-operative Group (NZE:FCG) lowered its forecast farmgate milk price for the 2026 to 2027 season to NZ$9.25 per kilogram of milk solids (kgMS) from NZ$9.75 per kgMS, citing declining prices at recent Global Dairy Trade auctions.Channel Infrastructure (ASX:CHI, NZE:CHI) has sold its fully decommissioned Continuous Catalytic Reforming platformer unit to Integrated Scope Dubai Multi Commodities Centre for $6 million, marking further progress in the redevelopment of its Marsden Point Energy Precinct.
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