HONG KONG - The arrest of Hambali was greeted with elation and relief in Asia and the United States, with US President George W Bush hailing the capture of "one of the world's most lethal terrorists".

"He is a known killer," Bush said after the announcement Hambali was in US custody. "He is a close associate of Sept 11 mastermind Khalid Sheikh Mohammed. He is one of the world's most lethal terrorists."

Asia-Pacific leaders were similarly satisfied with the arrest of Asia's most wanted man, accused of heading up the Jemaah Islamiah (JI) terror network behind the bombings on the Indonesian island of Bali.