"It's a mixed bag in Asia and may be a hangover from what's happening offshore, particularly Hong Kong affecting the region," said Peter McIntyre, an investment advisor at Craigs Investment Partners.
Several blue-chip stocks were weaker on relatively large volumes, which he said weighed on the index. Kiwi Property Group fell 1.2 per cent to $1.61 on an unusually large volume of 4.8 million shares. Spark New Zealand decreased 1.1 per cent to $3.98 on a volume of 2.9 million - in line with its average volume - and Fisher & Paykel Healthcare was down 1.1 per cent at $15.80 with 982,000 shares changing hands, almost twice its 554,000 average.
Sky TV rose 1.6 per cent to $1.24 on a volume of 1.1 million shares after the pay-TV operator said it will pay up to US$40m ($62m) in cash and shares for online rugby platform RugbyPass.
"That's a smart move by Sky. Apps are the way to go for them as we move into more ultrafast fibre and potentially 5G (mobile technology) as well," McIntyre said. He said the stock is one of the few on the NZX priced with potential upside, although "it's not for the conservative."
Precinct Properties New Zealand increased 0.3 per cent to $1.835 on a volume of 2.4 million shares after reporting a 3 per cent increase in operating earnings and saying its delayed Commercial Bay development is still on track for its retail and office opening dates.
McIntyre said the result was in line with expectations, and that investors are keenly watching Commercial Bay in anticipation of it driving up the stock's net tangible assets.
Precinct withheld more cash from Fletcher Building over the delayed construction. Fletcher decreased 0.9 per cent to $4.52 on a volume of 1.1 million shares.
Of other stocks trading on volumes of more than a million shares, Contact Energy rose 0.7 per cent to $8.40, Argosy Property fell 0.7 per cent to $1.415, Z Energy decreased 0.3 per cent to $6.66, Goodman Property Trust was down 0.9 per cent at $2.125, Infratil dropped 1.9 per cent to $4.66, and Meridian Energy was unchanged at $4.75.
McIntyre said earnings season gathers momentum next week, and he anticipates the results will follow Australia's lead in that a quarter have beaten estimates, a quarter have missed them, and half are in line. He expects exporters may struggle with the trade environment, while those firms focused on the domestic economy will likely report robust earnings.
NZX led the market higher, up 1.7 per cent to $1.22. The stock market operator reported a small increase in first-half operating earnings and signalled expectations for more earnings growth in the annual result.
Outside the benchmark index, Michael Hill International fell 1.9 per cent to 52 cents after reporting a 14 per cent decline in annual earnings as margins were squeezed.
Evolve Education rose 4.7 per cent to 11.2 cents after its biggest shareholder and director Chris Scott was appointed managing director, replacing its chief executive who will depart on August 26 after 13 months in the role.
Chorus's 2021 bonds paying annual interest of 4.12 per cent were the most traded debt security on a volume of 560,000. The notes closed at a yield of 2.04 per cent, down 14 basis points.