The NZX50 index, which closed down 3.64% on Thursday, closed yesterday’s trading up 1.4%, while the ASX200 finished up 0.2%.
United States sentiment is being driven by higher US Treasury bond interest rates, as investors opt to move cash there, compounded by the US-China trade tensions and concern the years-long bull market is due for a correction.
In yesterday’s US trading, the Dow Jones Industrial Average fell 2.13%, the S&P 500 lost 2.06% and the Nasdaq Composite dropped 1.25%.
Craigs Investment partners broker Peter McIntyre said sharemarkets across the Asia-Pacific region experienced significant falls on Thursday, the "worst" day of the week.
China’s Shanghai Composite Index slid 5.2%, the Hang Seng in Hong Kong was off 3.54%, Taiwan’s tech heavy Taiex lost 6.31%, the Korean KOSPI closed 4.44% lower and Japan’s Nikkei closed down 3.89%.
He said more volatility was in store, but investors were realising good buying opportunities were emerging.
New Zealand investor sentiment, including some of the large institutional investors, was being driven by taking gains, given the "stellar run" of the NZX50 during the past year. The NZX50 and US S&P500 were the top performing index for the past year.
Mr McIntyre noted a2 Milk shares dropped 11.46% and Auckland International Airport was down 4.75%; respectively they represented 6.22% and 6.8% of the market.
Also driving the sell-off was New Zealand concern rising US interest rates would ultimately send lending costs higher in New Zealand higher.
Mr McIntyre said while the NZX50 was down 6.74% for the month, it was still in positive territory for the year to date, up 3.85%.
Forsyth Barr broker Suzanne Kinnaird said Asian markets "plummeted" following the losses in the US, while the ASX 200 fell to its lowest close since mid-April.
"European and UK equities tumbled as the Wall Street sell-off dampened investor sentiment.
"A general concern the bull market might be due a correction appeared to be behind the [US] rout," she said.
