Market Update June 2026

Global Share Markets

Global share markets produced mixed returns in June, although currency movements provided a significant boost for New Zealand investors. Global shares hedged to the New Zealand dollar were broadly flat, falling 0.1%, while unhedged global shares gained 4.4%. This difference largely reflected the New Zealand dollar falling 5.6% against the US dollar during the month. Socially responsible global shares performed particularly well, gaining 5.2%, while emerging-market shares rose 3.8%.
June completed an exceptionally strong quarter for international share markets. Global shares returned 13.6% on a hedged basis and 15.4% unhedged, while socially responsible global shares gained 17.9%. Emerging markets were the standout performer, rising 24.5% over the quarter and 53.9% over the past year. The scale of these gains was noteworthy and reflected a substantial recovery from earlier market weakness.

AI-related investment remained an important driver, particularly across the semiconductor industry. Nvidia retained its position at the centre of the AI boom, while Asian chipmakers Samsung Electronics and SK Hynix benefited from growing demand for the advanced memory used in AI data centres. Semiconductor-equipment manufacturer Applied Materials was another standout, rising more than 60% in June. However, performance was not uniform: the S&P 500 declined around 1% during the month as concerns about elevated valuations and the enormous cost of building AI infrastructure weighed on some of the largest technology companies. This divergence highlighted the increasingly wide gap between individual stocks beneath the headline market returns.

New Zealand Share Market

Closer to home, New Zealand shares gained 2.9% in June, outperforming Australian shares, which rose 1.9%. Both markets returned 5.6% over the quarter, although Australia remained the stronger performer over the past year, gaining 19.8% compared with 8.8% for New Zealand. 

Fisher & Paykel Healthcare remained an important influence on the New Zealand market after reporting 14% revenue growth and a 24% increase in annual profit. Infratil also attracted investor interest through the continued expansion of its CDC data-centre business and the prospect of further growth in demand for AI-related infrastructure. Conversely, Mainfreight continued to face subdued global freight conditions, while a2 Milk experienced volatility following a product recall and ongoing uncertainty around its important Chinese market. These contrasting results reinforced the uneven nature of the recovery across New Zealand companies.

New Zealand listed property rose 1.6% in June and 5.0% over the quarter, but remained down 4.6% for the year to date as subdued economic conditions and financing costs continued to weigh on the sector. Residential property was also weak, with New Zealand house prices falling 0.9% in June and 2.4% over the quarter.

Fixed Interest

Fixed interest investments delivered positive returns. New Zealand bonds gained 1.2% in June and 3.0% over the quarter, while global bonds returned 0.3% and 1.0% respectively. Bond markets continued to balance attractive income yields against uncertainty surrounding inflation, government borrowing and the future path of central-bank interest rates. Nevertheless, bonds have provided useful portfolio stability, with New Zealand fixed interest returning 5.4% over the past year.

Overall, June was a positive month for most New Zealand investors. It also capped a remarkably strong quarter across global and emerging share markets. While these gains are welcome, returns of this magnitude are unlikely to continue each quarter. The rapid recovery from the March sell-off highlights the difficulty of timing markets and reinforces the importance of remaining invested during times of turmoil.