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Hillary Clinton has defied the polls, pundits and even her own expectations by winning a narrow but crucial victory over her chief rival for the Democratic nomination, Barack Obama, in the New Hampshire primary.

Her triumph means that the historically-charged battle between Mrs Clinton – seeking to become first woman to win the White House – and Mr Obama who hopes to be the first black president, is now wide open once again.

"Now together, let's give America the kind of comeback that New Hampshire has just given me," she declared amid wild scenes of celebration at her campaign headquarters.

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BACKGROUND

• The ascent of Barack Obama, Mr Charisma

• Decay, jobs and guns fall under the spotlight

• Free trade: Clinton/Obama's mistakes

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The victor in the Republican race was John McCain who told a similarly euphoric crowd that he had staged a "real come-back" by beating Mitt Romney – who for long led New Hampshire polls – into second place. "Mac is back! Mac is back!" chanted supporters as he told them he can kick on from here to win the nomination.

With 96 per cent of votes counted, Mrs Clinton had 39 per cent support, compared to 36 per cent for Mr Obama. Mr McCain led Mr Romney by 37 per cent to 32 per cent.

Turnout was swelled by warm – almost spring-like – weather with state officials claiming the vote would smash previous records. Exit polls suggested one in seven voters had made up their mind on the day of the election while around 40 per cent of those taking part in the Democratic contest were registered Independents.

Woman voters, who deserted Mrs Clinton when she finished third in last week's Iowa caucuses, appeared to have backed her solidly by a margin of 47 per cent to Mr Obama's 34 per cent in New Hampshire. Mrs Clinton also picked up greater support among younger people and, significantly, more half those taking part in the Democratic primary said they had made on their choice on the basis of issues, not personalities.

Mrs Clinton said that she had listened to New Hampshire voters and, in doing so, "I found my own voice". The tears which briefly filled her eyes at a campaign event on Monday may now be regarded as a turning point when a candidate often seen as cold and calculating at last revealed genuine emotion.

Her speech showed she had re-calibrated her message to incorporate some of Mr Obama's language of hope, as well as his notion of being part of a "movement" for change.

"This campaign will transform America," she promised, adding: "I'm not going out there alone: I'm going out there accompanied by millions and millions of people who believe this country is worth fighting for."

When she launched her presidential run almost a year ago, she said: "I'm in it to win it." At her New Hampshire victory party she said: "I'm in it for the American people."

A further adjustment was seen on television screens, which when Mrs Clinton lost in Iowa last week had shown her surrounded by ageing figures associated with her husband's presidency. Her victory rally, by contrast, showed Mrs Clinton speaking against a backdrop of young, overwhelmingly female, supporters.

The Clinton comeback creates the prospect of a drawn-out and possibly damaging fight for the Democratic nomination which could extend even beyond February 5, "Super Tuesday", when more than half the delegates for the Democratic presidential nomination convention will be elected. As Mrs Clinton put it: "We're in it for the long run."

Mr Obama conceded defeat to her in New Hampshire, congratulating on her on a "hard-fought victory". But he hinted at some of the bitterness that underlay the primary contest as he once again struck back at her warning against offering "false hopes". In America, he said, there had "never been anything false about hope".

John Edwards, who had been hoping to deliver a knock-out blow to Mrs Clinton after pushing her into third place in Iowa, sounded a defiant note at a party for supporters. He said there were still "48 states left to go" in the presidential nomination process and that he would stay in the race so that the voices of all Americans could be heard.

Mrs Clinton's victory will trigger a surge of confidence through a campaign which had been rocking on its heels as late as yesterday evening when aides were spinning that a small margin of defeat to Mr Obama would be a good result for her.

But, amid polls suggesting she was headed for a second crushing defeat, some of Mrs Clinton's advisers had been urging her effectively to cede coming contests in Nevada and South Carolina later this month. They are said to have told her it would be more prudent to concentrate time and resources in California, New York and nearly 20 other states in what amounts to a national primary on February 5.

Mrs Clinton can now claim to have beaten the pundits and the odds just as her husband did 16 years ago when he took a surprise second place in New Hampshire – and went on to win the White House.

She is preparing to shake-up her much-criticised campaign team, as well as beginning a more aggressive focus on Mr Obama's record, warning even before the primary result that "at some point the free ride ends”.

Maggie Williams, a longtime Clinton confidante, was reportedly being brought in to co-ordinate activities. Roy Spence, another family friend, was also said to be lined to play a big role in the next stage of a campaign increasingly focused on "Super Tuesday".

Mr McCain's win represents another extraordinary resurrection for a candidate who was widely written off in the summer.

Today, he flies into the next Republican battlegrounds of Michigan and South Carolina, hoping to gather further momentum in a nomination contest which is verging on chaos with a succession of frontrunners stumbling over each other in recent weeks.

"We showed the people of this country what a real comeback looks like," Mr McCain said. "We're going to move on to Michigan and South Carolina and win the nomination."

Mr Romney, whose strategy of spending heavily on the early states appears now to be in tatters, will also head to Michigan – which votes next Tuesday – a state where his father was governor.

Mike Huckabee was in third place with just over 11 per cent support, while Rudy Giuliani and Ron Paul vied for fourth.

The Republican field, which continues to have at least five viable candidates, meets for another television debate on Thursday night in South Carolina, where Mr Huckabee, the Iowa winner and former Arkansas governor, and Fred Thompson, another Southerner, are hoping to do well.

Mr Giuliani is continuing his high-risk strategy of focusing on the later, delegate-rich states such as Florida and New York. He waved off questions today about his slide in the polls, insisting he is still ahead in 15 states.

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