Market Update February 2026

Global Equities
Global share markets climbed in February, although leadership has shifted away from the United States and large-cap US technology. Unhedged global equities gained 2.1% for the month but remain flat year-to-date; the hedged global index rose 0.8% in February and 2.4% year-to-date. Strong gains in Europe and Asia—particularly in technology-heavy markets such as South Korea and Taiwan—have helped drive overall global returns. Emerging markets were notable outperformers, rising 6.4% for the month and 10.1% year to date, supported by semiconductor and AI-related demand in parts of Asia.

New Zealand Equities
The NZ share market delivered a solid month, with local equities up 2.3% in February, though only 1.3% year to date. Listed property lagged, falling -1.1% for the month and -4.7% year to date as higher funding costs and interest rate sensitivity continued to pressure the sector. Australian shares were a standout, gaining 6.5% in February and 8.2% year to date, helped by strength in banks, resources and technology-linked exporters benefiting from the global manufacturing and AI cycle.

Fixed Interest
Bond markets also contributed positively, as investors continued to anticipate eventual policy easing from major central banks. NZ fixed interest delivered 1.7% in February and 1.3% year to date, while global hedged bonds returned 1.3% for the month and 1.4% year to date. Falling government bond yields were the main driver of returns.