World ranked seventh New Zealand seized initiative in the first half when Kane Russell converted a penalty corner in the eighth minute from their first scoring opportunity.
Thereafter New Zealand controlled the proceedings in the rest of the half with better share of ball possession as the Argentines played catch-up hockey.
Argentina managed to earn two back-to-back penalty corners in the first half but failed to utilize them.
After the change of ends, the Argentines looked more organised and slowly and steadily got their footing in the match.
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The Argentine midfield and forwardline combined well in the second period to create a number of opportunities only to return empty-handed.
Argentina finally managed to draw parity in the 59th minute through Matias Paredes who slammed home a loose bouncing ball.
Both the teams, thereafter, created chances but failed to convert them into goals to take the match into penalty shoot-out.
Both Argentina and New Zealand scored from the first attempt of the sudden death forcing to prolong the game further.
However, in the next round of attempts Argentina faltered but New Zealand scored through Blair Hilton to enter the last-four stage, where they will face England on Friday.
Argentina, ranked 11th in the world, will take on Belgium in the 5-8 place classification match on Friday.