A healthy Chinese economy is essential to New Zealand's ability to rebalance its economy from consumption-led to export-led growth.

World shares advanced overnight amid expectations a deal on Greece's second financial rescue was imminent and that China was moving to increase liquidity at its banks.

Markets fell overnight on both sides of the Atlantic as Italy's borrowing costs soared, intensifying concern that efforts to contain the European Union's debt crisis aren't working.

The New Zealand dollar may extend its decline this week as investors, nervous about the slow progress being made on Europe's escalating sovereign debt crisis, sell growth-linked currencies for the relative safety of the greenback.

Prime Minister John Key thinks the government will be able to stick to its surplus and debt tracks if Asian economies stay "de-coupled" from the economic turmoil in Europe and the United States.

Finance Minister Bill English said that compared to the pessimism in the United States, the New Zealand was in "pretty good shape."

A new report quashing hopes China's would pick up the slack from problems in the US and Europe has sent...