Almost two billion dollars was wiped off the value of New Zealand’s share market due to the sharp fall in the stocks. Falling shares outnumbered gains by seven to one, reducing the market’s value from $172 billion to about $169.5 billion.
Financial market experts have compared the huge fall in stock markets to the start of the Covid-19 pandemic and the 2009 global financial crisis.
New Zealand companies directly exposed to US tariffs, like Fisher and Paykel Healthcare and Skellerup, were hardest hit. Investment funds based on US assets, and companies with US investments or revenue from American tourists, such as Air New Zealand and Sky City, also share their share prices plunging.
The New Zealand dollar witnessed a fall of nearly 2 cents since Friday (April 4) to around 55.5 US cents on April 7, its lowest level till date in 2025. BNZ senior markets strategist Jason Wong described the tariffs as possibly worse than the worst-case scenario. He highlighted China’s retaliatory tariffs as a significant factor in the Kiwi’s movement, including modest, temporary gains against the Australian dollar.
“We think at that level the New Zealand dollar is quite cheap and fundamentally undervalued, so to go beyond the 55-cent mark onto the downside, you’ve got to factor in more of a crisis situation,” stated Wong.Wong noted that the New Zealand dollar fell to 49 cents during the 2009 global financial crisis but believes the current situation is not as severe.Investment strategists have urged New Zealand investors not to panic. Nikko Asset Management NZ head of bonds and currency Fergus McDonald stated that current market conditions present both risk and opportunity. He also suggested the turmoil might create opportunities for risk takers or those with a longer-term horizon.
Mark Lister, head of investment strategy at Craigs Investment Partners, advised investors to remain calm and seek proper investment advice before making changes.
Trump slapped tariffs on all the trading partners of the USA including New Zealand, Australia, China, Canada, Mexico, European Union, India and a host of other countries. Many of the affected countries have hit back with retaliatory tariffs.
Koura KiwiSaver founder Rupert Carlyon anticipates noticeable declines in New Zealand investors’ balances by the end of the week. He advised investors to maintain a medium-term perspective. Carlyon recommended that KiwiSaver members avoid checking their balances and reacting to the news.
He acknowledged Trump’s unpredictability, which creates uncertainty impacting investment decisions.
