The New Zealand market closed lower on Thursday, ending a two-day winning streak. The market started off lower, as Wall Street's tumble overnight, amid weakness among financial and tech stocks, dented investor sentiment. The benchmark NZX 50 index closed down 64.9 points or 2.1% at 3,112.6, reversing Wednesday's 0.5% gains. The broader NZX All Capital index fell 62.6 points or 2.0% to finish at 3,162.6.

In currency trading, the kiwi closed higher at US$0.7560, despite weaker equity markets, up from Wednesday's late quotes of US$0.7538. However, the local unit fell against the Australian dollar that was buoyed by strong jobs data and the prospect of a rate rise across the Tasman.

On the economic front, manufacturing activity dropped in June to its third lowest level since 2002. The Bank of New Zealand-Business NZ seasonally adjusted performance of manufacturing index or PMI stood at 45.7 points compared to 49.3 in May.

Top stock Telecom plunged 4.0%, the second-ranked Contact Energy fell 1.4% and Fletcher Building, the third best stock, plummeted 4.5%. In the retail sector Hallenstein Glasson and Pumpkin Patch dropped 3.4% each, Michael Hill slumped 7.1% and The Warehouse Group fell 1.7%.

Other major losers included Auckland International Airport and Fisher & Paykel Healthcare 2.1% each, Cavalier 2.3%, Goodman Property and SkyCity 2.6% each, PGG Wrightson 1.9%, Ryman Healthcare 2.4% and Skellerup 2.4%.

Bucking the trend, Air New Zealand rose 0.9%, Ebos Group surged 3.8%, Fisher & Paykel Appliances climbed 1.6%, ING Medical Propertis advanced 0.9%, New Zealand Farming Systems added 1.1% and Trust Power moved up 1.3%.

New Zealand Oil & Gas lost 1.2% and New Zealand Refining Company declined 0.7%. Crude oil was up 20 cents at $136.25 a barrel in Asian trade Thursday after closing flat overnight amid a decline in U.S. stockpiles and tensions in the Middle East.