A rash stroke cost South Africa's Graeme Smith his wicket

Fielding lapses cost New Zealand dear as South Africa reached 237-3 on day two of the third Test in Wellington.

Jacques Rudolph (60) and Martin van Jaarsveld (48) were both dropped as they shared an unbroken stand of 101.

New Zealand were bowled out for 297 earlier in the day as spinner Nicky Boje finished with figures of 4-65.

Herschelle Gibbs made 77 as South Africa made a good start in reply but he also had a slick of luck as Stephen Fleming dropped him at mid-on.

Resuming at 248-6, New Zealand had only added nine to their overnight total when Shaun Pollock bowled Chris Cairns for 69 and had Daniel Vettori caught behind two balls later.

Debutant Michael Mason only managed three before falling to Andre Nel but Jacob Oram hit two sixes in his 34 off 38 balls before being stumped off Boje.

We surrendered day two as far as the batting was concerned NZ coach John Bracewell

Already 1-0 down in the series and facing the prospect of defeat by New Zealand for the first time, South Africa enjoyed a good start as Gibbs and Graeme Smith posted a century stand.

Gibbs survived a confident appeal for a catch by wicket-keeper Brendon McCullum as he attempted to hook a short ball and went on to hit a six and 11 fours.

Their partnership was ended when Smith, on 47, dragged a wide ball from Cairns into his stumps.

But it was Chris Martin who provided the main check to South Africa's progress when he dismissed Gibbs, who was caught by substitute Jamie Marshall, and then removed Gary Kirsten for one with the first ball of his next over.

With their side on 136-3, the task of rebuilding the innings fell to Rudolph and van Jaarsveld.

The bowlers found it hard going because of a strong northerly wind, especially spinner Vettori, who had both batsmen dropped in successive overs.

Oram was unable to hold on to a sharp chance at gully with van Jaarsveld on 23 and Matthew Sinclair then reprieved Rudolph by putting down a catch at mid-wicket.

Rudolph's half century duly arrived off 109 balls and by the close he had batted for three and a quarter hours, with his partner two away from what would be only his second half century in a Test match.

New Zealand: Stephen Fleming (capt), Mark Richardson, Michael Papps, Scott Styris, Matthew Sinclair, Chris Cairns, Jacob Oram, Brendon McCullum, Daniel Vettori, Michael Mason, Chris Martin.