Matt Henry led a late New Zealand fightback with both bat and ball but Australia still took the day one honours with Marnus Labuschagne getting some desperately needed runs.

Australia are 4/124 at stumps trailing New Zealand by just 38 runs with Labuschagne (45) and nightwatchman Nathan Lyon (1) to resume in the morning.

After Matt Henry crashed 29 runs in a lower order fightback with Tim Southee (26) the Blackcaps quick bowled a supreme final session spell taking 3/39 working over Cam Green in a magnificent over before Travis Head (21) went down swinging.

Henry’s spell came after Steve Smith failed again as opener leaving a ball from debutant Ben Sears to be trapped LBW for 11.

But Labushcagne put a run of low scored behind to hold Australia together until stumps.

Earlier Mitchell Starc pulled level with all-time great Dennis Lillee for Test wickets after claiming the first scalp of the second Test.

New Zealand were 3-71 at Hagley Oval, losing both openers around half an hour before lunch.

Will Young (14) and Tom Latham (38) were back in the pavilion along with Rachin Ravindra (8).

The scorecard justified skipper Pat Cummins’ decision to ask the Kiwis to bat first in Christchurch and the loss of rising star Ravindra on the final ball before the break was a massive blow for the hosts.

Marsh, at third slip, held onto a low effort after Young mistimed a pull shot, taking a leading edge from Starc (3-59).

The wicket was the paceman’s 355th in Test cricket, equalling the great tearaway quick of yesteryear.

But it was Josh Hazlewood who dominated with a magnificent spell of 5/31 as he ripped through the New Zealand top order.

Latham was the only batter to pass 30 as Starc chimed in to leave New Zealand 8/108.

Southee, in his 100th Test and Henry pushed the home side past 150 before both fell in quick succession to be bundled out for 162.

While New Zealand can only draw the series and cannot win back the Trans-Tasman Trophy, the World Test Championship points on offer make this a competitive Test.

India sit on top of the WTC table, with third-placed Australia - winners of the 2023 championship - requiring a win to catapult New Zealand into second.

For New Zealand, the Test is the last chance to avoid a clean sweep by their arch-rival, after the Twenty20 series went Australia’s way 3-0.