Asia greeted the new year with an atmosphere of renewed optimism despite the "fiscal cliff" impasse of spending cuts and tax increases threatening to reverberate globally from the United States and the tattered economies of Europe, where the party was expected to be more subdued.
Celebrations were planned around the world, culminating with the traditional crystal ball drop in New York City's Times Square, where 1 million people were expected to cram into the surrounding streets.
The balmy summer night in Sydney was split by 7 tons of fireworks fired from rooftops and barges, many cascading from the city's Harbor Bridge, in a $6.9 million pyrotechnic extravaganza billed by organizers as the world's largest.
In Myanmar, after nearly five decades under military regimes that discouraged or banned big public gatherings, about 90,000 people experienced the country's first New Year's Eve countdown in a field in the largest city of Yangon.
"We feel like we are in a different world," said Yu Thawda, a university student who came with three of her friends.
Tens of thousands of people lined Hong Kong's Victoria Harbor to view a $1.6 million fireworks display, said to be the biggest ever in the southern Chinese city.
In North Korea, cannons boomed at midnight in Pyongyang as people crowded the streets of the capital to watch a fireworks show over the Taedong River. After being in mourning a year ago regarding leader Kim Jong Il's death, North Koreans celebrated the end of a big year that included the rise of new leader Kim Jong Un and the recent launch of a satellite into space.
Hotels, clubs and other sites in New Delhi, the Indian capital, canceled festivities after the death Saturday of a young rape victim touched off days of mourning and reflection about women's safety. People were asked to light candles to express their solidarity with the victim.
In Indonesia, Jakarta's street party centered on a 7-kilometer (4-mile) thoroughfare closed to traffic from nightfall until after midnight. Workers erected 16 large stages along the normally clogged, eight-lane highway through the heart of the city. Indonesia's booming economy is a rare bright spot amid global gloom and is bringing prosperity — or the hope of it — to its people.
In the Philippines, where many are recovering from devastation from a recent typhoon, health officials have hit upon a successful way to stop revelers from setting off huge illegal firecrackers that maim and injure hundreds of Filipinos each year.
A health official, Eric Tayag, donned the splashy outfit of South Korean star PSY and danced to his YouTube hit "Gangnam Style" video while preaching against the use of illegal firecrackers on TV, in schools and in public arenas.
"The campaign has become viral," Tayag said.
In austerity-hit Europe, the mood was more restrained — if hopeful. The year 2013 is projected to be a sixth straight one of recession amid Greece's worst economic crisis since World War II.
Still, in his televised New Year's Eve message, Prime Minister Antonis Samaras promised Greeks that the worst of the crisis is past, and declared 2013 a "year of hope" that will see the beginning of the country's rebirth.
Celebrating New Year's Eve with a vespers service in St. Peter's Basilica, Pope Benedict XVI said that despite all the injustice in the world, goodness prevails. In his homily, Benedict said taking time to meditate in prolonged reflection and prayer can help "find healing from the inevitable wounds of daily life."
German Chancellor Angela Merkel's New Year's message warned her country to prepare for difficult economic times ahead. Nicosia, the capital of Cyprus, decided to cancel celebrations in light of the economic crisis. Nicosia said 16,000 euros ($21,000) saved from the canceled event will be given to some 320 needy schoolchildren.
In Spain, where a recession has left unemployment at a staggering 25 percent, people are hoping for a better new year.
"It's been tough, but some celebrations are too deeply-ingrained to let go," said Olga Camino, 25, who said she would be celebrating in the streets of Madrid in fancy dress with a large group of friends. She said they would all eat 12 grapes as the clock in Madrid's central Puerta del Sol struck midnight, a tradition observed throughout Spain.
Scotland's Edinburgh, which traditionally hosts one of the biggest New Year's Eve parties in Europe, also planned good cheer. Organizers said about 75,000 people are expected for the Scottish capital's Hogmanay — or year-end — celebrations.
Hong Kong feng shui master Raymond Lo predicted 2013 would be less turbulent than 2012 because the Chinese New Year in February will usher in the year of the snake, bringing an end to the year of the dragon, which was associated with water. Water is one of the five elements in feng shui theory, the Chinese practice of arranging objects and choosing dates to improve luck.
"Water is fear. So that's why we have had so much turbulence especially in the winter months," such as doomsday prophecies, school shootings and concerns about the fiscal cliff, said Lo.
"But the good news is that the coming year of the snake is the first time that fire has come back since 2007. Fire actually is the opposite to water, fire is happiness. So therefore the year of the snake is a much more optimistic year. So you can see signs of economic recovery now," he added.