New Zealand were bowled out for 214 shortly before tea. South Africa decided not to enforce the follow on. Dale Steyn and Kagiso Rabada took three wickets each and Vernon Philander claimed two.
Only captain Kane Williamson was able to provide sustained resistance for New Zealand. He was last man out for 77. With Steyn and Philander both returning from long-term injuries, it was the first time they had played in the same Test match as Rabada, South Africa's 21-year-old cricketer of the year.
Williamson and Nicholls put on 60 for the fourth wicket and enabled New Zealand to make an encouraging start to the day after resuming at 38 for three.
New Zealand's resistance crumbled after the breakthrough, although South Africa lost control briefly when Rabada and Steyn peppered number 10 batsman Neil Wagner with bouncers, probably in retaliation for Wagner's short-pitched assault during South Africa's first innings of 481 for eight declared.
Off-spinner Dane Piedt picked up the wicket of Tim Southee, while Ross Taylor was run out during New Zealand's collapse on the second evening. Three of the first five wickets came through successful reviews by South Africa after their initial appeals had been turned down.
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