New Zealand shares rose on Thursday as global markets welcomed a tariff U-turn that eased global trade tensions.

The S&P/NZX 50 Index jumped 3.34% or 394.88 points to close at 12,201.43.

Asian shares climbed on Thursday after US President Donald Trump announced a 90-day pause on many of his new tariff impositions.

Consequently, The Nasdaq Composite surged 12%, the S&P 500 climbed 9.5%, and the Dow Jones Industrial Average soared 7.9%.

New Zealand and Australia said on Thursday they are each collaborating with other nations on a possible joint response to shore up free trade against U.S. tariffs, according to a Thursday Reuters report.

"New Zealand will continue to work with like-minded countries to promote free trade as a path to prosperity and explore the role of the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) in strengthening that vision," said Prime Minister Christopher Luxon in a speech.

In the local economy, New Zealand's Light Traffic Index continued its flat trend as it ticked up 0.1% month on month in March, while the Heavy Traffic Index declined 2.1%, according to Thursday data compiled by ANZ Research.

Also, The Reserve Bank of New Zealand's decision to cut the official cash rate by 25 basis points to 3.5% was a measured step, ANZ Research said in a Wednesday note.

In corporate news, Westpac Banking (ASX:WBC, NZE:WBC) and ANZ Group Holdings (ASX:ANZ, NZE:ANZ) lowered their floating home and business loan rates, following the Reserve Bank of New Zealand's decision to cut the official cash rate cut by 25 basis points to 3.5%, according to Thursday statements by the banks.

Carpet manufacturer Bremworth (NZE:BRW) disclosed the departure of Chief Executive Greg Smith, effective April 11.