Seconds later Matsui, whose impressive tournament had a disappointing end when he was withdrawn shortly after the restart, crashed his long-range effort against Paraguay goalkeeper Justo Villar's crossbar.
Goalkeeper JustoVillar then appeared to foul Cesc Fabregas as he scrambled to collect the rebound but a third penalty award was not forthcoming, while Sergio Ramos pounced on the loose ball but his shot was blocked on the line.
At the start of the 90 minutes, New Zealand, ranked 77 in the world, also had the chance of reaching the last 16 but wasted their golden opportunity by failing to trouble Paraguay goalkeeper JustoVillar even once in the match.