UPDATED 12.38PM: The New Zealand share market has opened sharply weaker for the second day in a row.

Black Monday: China fears spark global market plunge

In the opening minutes of trade, the NZX 50 Index was down 134 points or 2.4 per cent.

On Monday, the index lost 143 points, or 2.49 per cent and about $2.25 billion was shaved off the market's total market capitalisation.

Finance Minister Bill English doesn't believe New Zealand is likely to go into recession.

"You never quite know how far these global events will go, that's why we focus on taking a medium term view about the resilience in the economy rather than reacting week to week or month to month," English said. 

Prime Minister John Key insists New Zealand is in a better position than most to weather the economic storm, but said if there is an economic fallout here, the government can stimulate the economy in a number of ways, like building more infrastructure and even cutting taxes.

Mr Key says he's watching with interest the stock market turmoil.

"Plunging stock markets around the world are never great for confidence, they do make people take stock and take a little bit of caution about what they're doing," Key said.

"When it comes to the Auckland housing market, that's no bad thing."

However Labour Party leader Andrew Little believes that rather than looking at other countries and claiming that New Zealand is doing better, the government should be addressing the many problems it faces.

"It's just more dumbness from the Prime Minister. We deserve better than that. We deserve a Prime Minister and government that's open and honest with us about exactly what's happening."

"Stop playing it down, stop talking about other countries that have completely different circumstances. We have our own here and it's not good." 

Anthony Halls of Mint Asset Management said so far the New Zealand market hasn't faired as badly as the rest of the major markets.

"The US market was down about four percent last night, the Europeans were down about five percent roughly. Our market so far today is down a bit under two-point-four percent, so it's outperforming the world but still getting pushed down," Halls said. 

Andrew Kelleher of JMIS limited said the slide in the market may not be over.

"We will wait for the Australian markets to open, then we'll wait for the Asian markets to open, and we'll take our leads from them. At the moment, I think it's unclear as to what those markets will do."