The spate of draws on the opening day continued when Japan rallied to hold hosts Malaysia 1-1.
Leading through an open striker by Tom Craig in the 32nd minutes, Australia were looking to bolster their position when New Zealand capitalised on a brisk breakaway.
The 20-year-old Newman, playing in his 11th international, made the day a memorable one with a deft shot that left the Australian defenders stunned.
Australia, nine-time winners of the Sultan Azlan Shah Cup, are using this tournament to rebuild their squad after the disappointing show in the 2012 Olympics at Rio de Janeiro.
Boosted by support from the spectator galleries, Malaysia took the lead through a penalty corner conversion by Razie Rahim in the eighth minute, only to see Japan equalise in the 40th minute penalty corner strike by Shota Yamada.
Japan could have clinched victory had Malaysian goalkeeper Kumar Subramaniam not charged forward to thwart Koji Yamasaki, who had dribbled in unmarked in the 56th minute.