The NZX 50 index fell 3.4% or 111 points to 3158, it's biggest one day fall in six years.
The Australian share market was down 114.9 points or 2.43% at 4,607.3.
In currency markets, the dollar is trading at 66.46 US, 83.92 Australian, 36.48 pence, 69.39 yen, and 0.4630 euro. The TWI stands at 63.08.
Telecom fell 8 cents to $2.73 while Contact Energy dropped 15c to $8.61.
Fletcher Building fell 32c to $6.95,and The Warehouse was down 13c to $3.07.
Sanford fell 30c to $5.35, and Telstra Clear was down 23c to $4.80.
The one stock to achieve a positive close was APN, which rose 1c to $3.05.
