Australia shone with both bat and ball as Ricky Ponting's men installed themselves as firm favourites for victory in the first Test against New Zealand in Wellington.

After Ponting surprisingly declared on 459 for five midway through the middle session on day two, the visitors maintained their stranglehold by reducing New Zealand to 108 for four at stumps to leave them trailing by 351 runs.

Once again New Zealand captain Daniel Vettori had to perform a rescue mission after coming to the crease with his side in a perilous position at 43 for four.

The all-rounder was just eight runs shy of his 22nd half-century when play ended and he and Martin Guptill (19 not out) will need to continue the fightback on day three if New Zealand are to provide Australia with any kind of challenge.

Having dominated the first four sessions thanks to Michael Clarke (168), Marcus North (112no), Simon Katich (79) and Ponting (41), it was the turn of the Australian bowlers to turn the screw after lunch at the Basin Reserve - and they wasted no time.

Doug Bollinger (two for 21) trapped opener BJ Watling for a duck with his fifth ball and Mitchell Johnson followed that up with some nifty footwork to have Peter Ingram run out for five.

Tim McIntosh ran a single that was not there and Ingram was well short of the crease when Johnson kicked the ball onto the stumps at the striker's end.

By tea New Zealand had limped to 20 for two with Ross Taylor and Tim McIntosh unbeaten on four and seven, respectively.

But early in the final session Ryan Harris (one for 23) bagged his maiden Test wicket when McIntosh got a thick edge to Michael Hussey to leave New Zealand in real trouble on 31 for three.

They sank further into the mire when Taylor, who had hit four boundaries on his way to a 38-ball 21, was caught by North off the first ball of Bollinger's new spell with New Zealand's score only advanced by 12 runs. Vettori and Guptill survived to the close putting on a valuable 65 runs and will need to provide more of the same grit and determination on day three.