Credit Getty
England lost their way with a series of aimless plans against Watling and De Grandhomme, but Broad wisely returned to pitching up, getting the old ball to nip away and catch the outside edge of De Grandhomme's bat as it zipped through to Bairstow.
Watling was 77 not out after he and de Grandhomme had come together at 36 for five and then combined for 142 runs for the sixth wicket to drag the hosts back into the match after Stuart Broad and James Anderson had blasted the top off the innings.
Bairstow was immediately back among the action when he caught Latham to give Broad his first wicket with the ninth delivery of the New Zealand innings.
It nearly got better immediately for England, who reviewed a not out lbw decision against Kane Williamson, but the New Zealand captain just survived.
England will have confidence they can run through the New Zealand order a second time later in the Test given the lack of application from the top order.
The Day One of the second Test saw the game was evenly poised.
The wicketkeeper-batsman resumed the day on 97 and reached his century off singles, punching the air as he sprinted down the wicket to reach three figures.
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He was the last man out, giving Trent Boult his fourth wicket of the innings.
Southee finished the innings with six for 62 while Trent Boult took four for 87 for the New Zealand strike pair to take all 10 wickets as they did in the first innings of the first Test.
The pitch at Hagley Oval proved lively when the ball was new and there was some dew in the air.
Colin de Grandhomme of the Black Caps during day two of the second global cricket Test match between New Zealand and England at Hagley Oval in Christchurch.
Broad, who had faced losing his opening bowler status at the start of the New Zealand series, seized his opportunity.
Broad added to his tally with the wickets of New Zealand's senior batsman Ross Taylor, caught by Alastair Cook at first slip for two, and Henry Nicholls was out on review to an lbw shout without scoring.
New Zealand's Kane Williamson plays at the ball during play on day two of the second cricket test against England in Christchurch, New Zealand, Saturday, March 31, 2018.
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