How the world media is reacting to the Labour-NZ First government announcement.
Here is what they had to say on New Zealand's new Government, new Prime Minister Jacinda Ardern and NZ First leader Winston Peters:
Across the ditch the Rupert Murdoch-owned The Australian thundered 'Shock in NZ as losers take power', describing Jacinda Ardern as "socialist-leaning".
Photo: Guardian / Screenshot
And in a commentary in the same edition columnist Greg Sheridan expressed dismay at the outcome.
In an article headlined 'Vanilla election ends with bitter aftertaste' Sheridan bemoaned: "The rise of celebrity politicians, the fall of good governments, the terror of the populists - in its mild, vanilla way, this weird New Zealand election outcome has it all."
"Trust the Kiwis," he said. "The thought of perhaps 10 years of good government was ultimately unbearable for them."
Mr Sheridan said ten years of solid economic growth was now at risk
"Ardern and Peters will almost certainly take New Zealand backwards," he said.
The Australian also carried an editorial 'NZ Labour's Pyrrhic victory' -suggesting its sub-editors have a shaky understanding of the meaning of pyrrhic.
"Winston Peters' decision to throw in his lot with Labour to form New Zealand's new government makes a mockery of last month's election." the leader said.
Dominique Schwartz on the ABC's website predicted a rocky road ahead for Ms Ardern.
"She owes a debt to kingmaker Winston Peters - a debt, he won't let her forget, which could make life interesting when the going gets tough.
"And it always does."
The Guardian highlighted Ms Ardern's reluctance to take the top job describing her as a "reluctant leader"
"Less than three months ago, Jacinda Ardern, preoccupied by home renovations, said the only way she would ever lead New Zealand's Labour party would be if her entire caucus was hit by a bus and she was the "designated survivor"."
The news.com.au website had this to say:
"Four weeks ago she was painting the fence in her trackies. Now, NZ's new PM is half of a political marriage that puts a 'madman on the loose'".
Talia Shadwell writing in The Independent was upbeat:
"I used to work with Jacinda Ardern - this is why she is good news for New Zealand.
She said it was an election fought on "generational battle lines."
"The Nationals steadfastly - and foolishly - refused to cop to a housing crisis, as outpriced young Kiwi voters - dubbed Generation Rent - watched speculators and offshore buyers scoop up morsels from the country's too-slow growing housing stock, chipping away at their fading hopes of achieving the home ownership dream," she said.
Australian Foreign Minister Julie Bishop has dismissed suggestions of any tensions with Ms Ardern's Labour-led government
In August, Ms Bishop accused the Labour Party of colluding with the Australian Labor Party to dig up information on Barnaby Joyce's dual New Zealand citizenship.
Ms Bishop labelled that 'treacherous behaviour', saying should there be a change of government in New Zealand, she'd find it very hard to build trust with those involved in what she called an attempt to undermine the Australian government.
However, Ms Bishop has now congratulated Ms Ardern but not spoken directly to her. She said the two countries will continue their strong diplomatic relationship.
Messages started to flood in for Ms Ardern following Mr Peters' announcement last night.
Check out a recap of how we got here, find out what you need to know, and look back on RNZ's live coverage
Australian Prime Minister Malcolm Turnbull said he had sent Ms Ardern a congratulatory text and hoped to speak to her soon.
Ms Ardern was keen on that idea, saying in her speech that she was wanting to get across the ditch pretty quickly.
She also said she hadn't had a chance to look at her phone yet.
Former Australian leader Julia Gillard was also quick off the mark, offering her congrats via Twitter.
As was the current Australian Labor leader Bill Shorten.
The BBC noted Ms Ardern would be New Zealand's youngest leader since 1856, while The Guardian featured the action on the top of its international website.