In city squares and living rooms, ballrooms and villages, the citizens of the world cheered the election of Barack Obama as US president, increasing hopes that America's first black commander in chief would herald a more balanced, less confrontational America.

People crowded around TVs or listened to blaring radios for the latest updates.

In Sydney, Australians filled a hotel ballroom. In Rio, Brazilians partied on the beach. In the town of Obama, in Japan, dancers cheered in delight when their namesake's victory was declared.

People the world over - many of them in countries where the idea of a minority being elected leader is unthinkable - expressed amazement and satisfaction that the United States could overcome centuries of racial strife and elect an African-American - and one with Hussein as a middle name - as president.

"What an inspiration. He is the first truly global US president the world has ever had,’’ said Pracha Kanjananont, a 29-year-old Thai sitting at a Starbuck's in Bangkok.

"He had an Asian childhood, African parentage and has a Middle Eastern name. He is a truly global president.’’ Hopes were also high among those critical of President George Bush's policies that an Obama victory would herald a more inclusive, internationally co-operative US approach. Many cited the Iraq war as the type of blunder Mr Obama was unlikely to repeat.

Scepticism, however, was high in the Muslim world. The Bush administration alienated those in the Middle East by mistreating prisoners at its detention centre for terrorism suspects at Guantanamo Bay, Cuba, and inmates at Iraq's Abu Ghraib prison - human rights violations also condemned worldwide.

Some Iraqis, who have suffered through five years of a war ignited by the United States and its allies, said they would believe positive change when they saw it.

"Obama's victory will do nothing for the Iraqi issue nor for the Palestinian issue,’’ said Muneer Jamal, a Baghdad resident. "I think all the promises Obama made during the campaign will remain mere promises.’’ Still, many around the world found Mr Obama's international roots - his father was Kenyan, and he lived four years in Indonesia as a child - compelling and attractive.

Kenya's President Mwai Kibaki declared a public holiday on Thursday in honour of Obama's election victory, and people across Africa stayed up all night or woke before dawn today to watch the US election results roll in.