New Zealand share prices rallied by almost two per cent today on the back of news from FBI director James Comey that there was no evidence in newly-discovered emails to warrant criminal charges against the US Democratic presidential nominee Hillary Clinton.

A win for Clinton at this week's election is seen as being a more favourable outcome for the markets as opposed to a win for her opponent, Republican nominee, Donald Trump, who has pursued a staunch anti-free trade theme in his camaign.

Comey's initial decision to make a renewed inquiry into Clinton's emails came as a blow the Clinton campaign and gave fresh momenutm to to the Trump at a crucial moment, sapping a surging Clinton's momentum and giving Trump fresh ammunition.

By 2 pm the NZX-50 index was up 113 points, or 1.7 per cent, at 6821 after last week entering was is technically regarded as correction territory by sinking more than 10 per cent from its record peak.


David Price, director of institutional equities at brokers Forsyth Barr, said the market's gain was in response to the news about Clinton but that trading volumes were very light, indicating investors had taken to the sidelines until the result of the US election is known
on Wednesday.

"It (the news about Clinton) probably turned people more to the positive front," Price said.

"So at this stage that's the favoured outcome if she was to win," he said.

"It's very, very quiet and it will probably stay that way until we get a clearer picture of what is happening," Price said.

In background, interest rates in the New Zealand and around the world are on the rise.
US 10 year bond yields were at 1.82 per cent, up from 1.50 per cent three months ago.

In New Zealand, the equivalent government bond was at 2.76 per cent from 2.10 per cent.

This week, the Reserve Bank of New Zealand is expected to cut its offcial cash rate by a quarter of a percentage point to 1.75 per cent but economists expect this to be the end of the current easing cycle, which started in April last year.