New Zealand and Israel confirmed cases of swine flu on Tuesday, the latest countries hit by a new strain that has killed up to 149 people in Mexico and which threatens to become a pandemic, Reuters reported. The World Health Organisation has raised its alert level to phase 4, indicating a significantly increased risk of pandemic. Global markets tumbled for a second day on Tuesday on fears the outbreak could snuff out fragile signs of economic recovery. No one has died outside Mexico but more than 50 infected people have been found in the United States, six in Canada and two each across the Atlantic in Spain and Scotland. Possible cases were being tested in South Korea and Australia. New Zealand said three of 11 people in a school group that visited Mexico had tested positive and it expected the others would also turn out to be positive when tests were completed. Health Minister Tony Ryall said all those affected appeared to have only mild symptoms and had been responding to treatment. Authorities have tracked down most of the 356 people on the same flight from Los Angeles as the infected students. The Israeli carrier, a 26-year-old man, had also recently returned from Mexico. "His condition is good but he is being kept hospitalised for observation," health ministry spokeswoman Einav Shimron said.