New Zealand shares closed flat Tuesday as investors awaited clues on the Reserve Bank's policy path ahead of the widely expected rate cut tomorrow.

The S&P/NZX 50 Index was little changed at 13,051.12.

Elsewhere, the Shanghai SSE rose 0.3%, Japan's Nikkei 225 gained 0.7%, and Hong Kong's Hang Seng advanced 2.1%. The ASX 200 shed 0.6% in the wake of the Reserve Bank of Australia's first rate cut since 2020.

In domestic news, the Reserve Bank of New Zealand is widely expected to lower the official cash rate (OCR), with ANZ Research anticipating a reduction by half a percentage point to 3.75%. With a rate cut almost guaranteed, the market will likely pay attention to the bank's guidance beyond February in the context of cooling inflation and global trade tensions.

The New Zealand Institute of Economic Research's monetary policy "shadow board" said in a Tuesday report that the Reserve Bank should take a "more cautious approach to the pace of OCR cuts" in the year ahead.

In corporate news, Heartland Group Holdings (ASX:HGH, NZE:HGH) lost nearly 15% to plunge to a 52-week low Tuesday after it reported an impairment expense of NZ$49.6 million in its New Zealand bank, Heartland for the six months ended Dec. 31, 2024.

Meridian Energy (ASX:MEZ,NZE:MEL) received consent from the Environment Court for its 90-megawatt Mt. Munro wind farm in Wairarapa, New Zealand. The company's shares were down 2% at market close.