Wellington  - New Zealand's stock exchange lost 1.3 billion New Zealand dollars (881 million US dollars) of valuation Tuesday after a US congressional rejection of a plan to bail out banks.

The NZX-50 closed down 3.7 per cent on a 113-point fall.

New Zealand's stock exchange was the first to open after the vote in the US House of Representatives.

Finance minister Michael Cullen and opposition National Party leader John Key said they expected the US Congress to soon approve a restructured bail-out plan.

Cullen told Radio New Zealand Tuesday that further delay would weaken the supply of credit.

"That flows through into the real economy, because businesses are then unable to borrow, and sectors like construction come under even more pressure than they are at present in the US and elsewhere in the world," Cullen said.

Key, a former currency trader with Merrill Lynch, said any further refusal to support the US finance sector would damage New Zealand's economic growth. (dpa)