Countries in Asia on Wednesday hailed US President Barack Obama as an inspirational leader and welcomed his inauguration as the world faces economic and security challenges, pledging to cooperate with him on tackling those issues.

"I am confident that Japan and the United States, which are in the position of leading the world, can create a better future by putting together our expertise, will, passion and strategy," Japanese Prime Minister Taro Aso said in a statement.

Japanese media reported that Tokyo wants to set up a meeting between the leaders of the world's two largest economies ahead of a financial summit scheduled for April.

Another economic powerhouse in the region, Singapore, said the world would be turning to Obama, who was inaugurated Tuesday, to deal with the global economic crisis.

"Many countries that are grappling with the consequences of the global economic downturn will be looking to the United States for leadership in addressing the global economic situation as well as security and environmental challenges," President SR Nathan said in a congratulatory message.

Prime Minister Kevin Rudd said Australia would work with Obama to tackle economic, environmental and defence challenges.

"Economic storm clouds are on the horizon," Rudd said. "The task of tackling climate change lies before us. As allies, [we] share great challenges in Afghanistan and beyond, but in President Obama, I say this, Australia will have a friend and an ally to shoulder these challenges together."

More difficult than US relations with those allies would be the Obama administration's dealings with Pakistan. Pakistan is an ally of the United States in its fight against al-Qaeda and the Taliban in Afghanistan, but relations between Islamabad and Washington have soured in recent months in the wake of US airstrikes in Pakistan's tribal region along the Afghan border, a known hub of militants.

As the Pakistani government looks to the new US administration to review the strategy for rooting out militants in the region, Pakistani Prime Minister Yousaf Raza Gilani praised Obama's "inspiring leadership," saying it would bring peace and prosperity to the United States.

"Under your stewardship, the United States will undoubtedly lead the way in overcoming the challenges that confront humanity by a renewal of faith and commitment to shared ideals and values," Gilani said.

Congratulations did not come only from Asia's leaders. A qawwali, a singing tradition of South Asian Sufi mystics dating back to the
16th century, was held for Obama at a shrine to one of the region's most important sufi saints in the Indian capital.

Dewan Syed Ali Moosa Nizami - chairman and cleric of the shrine, or dargah, of Hazrat Nizamuddin Auliya - said the qawwali was held to herald a new dawn of peace and hope in the world.

"We hope Obama's becoming president reinforces the Sufi tradition of peace and tolerance joining hearts and not cutting them asunder," the Times of India newspaper quoted Nizami as saying.

Obamamania gripped New Delhi and other Indian cities as people watched television late into Tuesday night.

"It is a moment in history of the United States that is going to affect the whole world," said Rishabh Bhatia, a banker based in Delhi. "His speech gave a sense of hope not just to Americans, but people all over, that there is still a chance of peace and cooperation."

Some of Hong Kong's 40,000-strong American expatriate community partied into the early hours Wednesday as they watched TV coverage of Obama's inauguration ceremony.

"Today we celebrate the election of a man who has justly captured the attention of the whole world," said Richard Vuylsteke, chairman of the Hong Kong American Chamber of Commerce.

"He has excited us all with his vision, his commitment to change, and his ability to speak with passion and compassion. He has given all of us hope for constructive change in our collective future."

US citizens in Australia crawled into work Wednesday after staying up all night to be a distant part of Obama's inauguration.

Some who had set their alarm clocks said their plan to get some more sleep after waking to hear the live telecast of Obama's speech was foiled by the euphoria that the historic occasion induced.

At a Jakarta event organized by Democrats Abroad, foreigners and Indonesians watching the live broadcast of the inauguration booed outgoing president George W Bush and cheered Obama.

"This is a historic day for America and for Indonesia. Obama is our man in America," Julia Hakim, an Indonesian who attended, said of the man who lived in Indonesia for four years as a child after his mother married an Indonesian.

Indonesian President Susilo Bambang Yudhoyono said Obama's inauguration was a special moment for Indonesia.

"I will work with him in any way I can to promote enduring peace," Yudhoyono said in remarks read by his spokesman Dino Patti Djalal at an event organized by the US embassy in Jakarta Tuesday night.

He said Indonesia was looking forward to welcoming Obama back.

In congratulations sent from Thailand, Prime Minister Abhisit Vejjajiva, who himself took office in December, said he was confident of Obama's abilities: "I believe that under your strong and energetic leadership, the US will overcome the many daunting challenges ahead and bring about positive changes to the world community at large."

In the Philippines, a spokeswoman for President Gloria Macapagal Arroyo said Arroyo found Obama's inaugural address moving.

"His words deeply resonate with the president's dream for the nation and the world: to celebrate and welcome hope, to allow peace and cooperation to reign and to triumph over the economic and diplomatic challenges that we face," Lorelie Fajardo said.

Malaysian Deputy Prime Minister Najib Razak said he hoped Obama would do away with the unilateralism of the Bush administration.

"If during Bush's time, we saw a lot of 'hard power,' which was using military force, being used to solve the world's problems, we hope President Obama can take on a combination of both soft and hard power to tackle issues," he said.

The leaders of Bangladesh, which returned to democracy after almost two years of emergency rule with elections last month, expressed hopes for improved ties under Obama.

"We, in Bangladesh, as many around the world, see in your leadership a new dawn of hope, and we stand ready to extend to you our all-out cooperation," President Iajuddin Ahmed said.