By Rebecca Howard
WELLINGTON, New Zealand--Prime Minister John Key is set to lead
New Zealand for a third consecutive term after his National Party
won 48% of the vote in Saturday's election.
Official results show Mr. Key's party will likely end up with 61
seats in a 121-member Parliament. While the National Party may be
able to govern alone with those numbers, Mr. Key said he stood
ready to work with like-minded parties, and that he'd be talking to
his current coalition parties over the next few days.
"People could see the country was headed in the right direction
and they rewarded us," the former investment banker said in a
televised interview Saturday night.
David Cunliffe, leader of the main opposition Labour Party,
conceded defeat. The Labour Party picked up 25% of the overall
vote, according to the Electoral Commission, while the Green Party,
thought to be its likeliest coalition partner, won 10%.
"New Zealanders have chosen to continue and we respect that
choice," Mr. Cunliffe told supporters. "Our opponents have built a
formidable electoral machine."
The 53-year-old Mr. Key has helped steer New Zealand to a level
of prosperity rarely found in developed countries since the global
financial crisis, campaigning against a backdrop of the strongest
economic growth in a decade.
The engine of its growth has been the nation's dairy industry,
which is already feeding large parts of Asia, and a construction
boom fueled by rebuilding after a series of earthquakes in 2010 and
2011.
But the incoming government will face new challenges, with
growth projected to fall sharply over the coming years as the
rebuilding of Christchurch wraps up, prices for New Zealand's main
commodity exports fall and monetary conditions tighten.
Mr. Key has promised business as usual and has said his
government would balance the books this year after six years of
deficits. "Three more years. This is a victory for those who kept
the faith and refused to be distracted," Mr. Key told
supporters.
Markets are likely to be cheered by Mr. Key's win when they open
Monday. "It was a great victory for stability in New Zealand and
markets like stability," said Auckland-based ASB's head of FX
institutional sales, Tim Kelleher.
He said the New Zealand dollar could jump from US$0.8125 to as
high as US$0.8200 in an initial reaction when markets open.
"The market is just going to love that result," said Grant
Williamson, a Christchurch-based broker for Hamilton Hindin Green.
"It couldn't have been a better result. It removes all
uncertainty."
Write to Rebecca Howard at rebecca.howard@wsj.com