New Zealand shares reached a fresh 52-week high Wednesday after the Reserve Bank of New Zealand delivered its third rate cut since August and signaled more easing next year.

The S&P/NZX 50 Index gained about 0.8%, or 99.16 points, to close at 13,212.92.

Communications equities led the increase as the segment rose 2%, followed by producer manufacturing and health technology stocks, with gains of 1.7% and 1.4%, respectively.

The Reserve Bank of New Zealand Wednesday slashed the official cash rate by 50 basis points to 4.25% in a widely expected move. With further policy easing also certain early in 2025, the focus now shifts to the pace of future rate cuts.

"It is technically on the fence regarding whether February will bring a 25bp or 50bp cut, but the Governor made a comment at the press conference that made it clear that another 50bp is the default at this point," ANZ Research said in a note following the decision. Easing will likely be slower after that until it reaches around 3% in line with the Reserve Bank's forecast, it added.

In corporate news, Stride Property Group (NZE:SPG) reported adjusted funds from operations after income tax of NZ$0.0376 per share for the first half of fiscal 2025, down from NZ$0.0545 per share a year earlier. The company's shares switched between gains and losses before ending Wednesday trade up almost 1%.

Elsewhere, Synlait Milk (NZE:SML, ASX:SM1) disclosed a reduction in its gas emissions, with Scope 1 down 20% and Scope 2 dropping 11% during the financial year ended July 31 compared with fiscal 2020.