March 24 (Bloomberg) -- Asian stocks rose, led by the biggest rally in Taiwan in six weeks, after Ma Ying-jeou's presidential election victory boosted prospects of improved trade with China.

Taiwan Semiconductor Manufacturing Co., the world's largest custom-chip maker, and Cathay Financial Holding Co. surged. Nissan Motor Co., Japan's third-biggest carmaker, paced gains among automakers after forecasting higher sales. China's benchmark CSI 300 Index tumbled 4.5 percent, led by Citic Securities Co., as speculation waned that the government will take steps to bolster the stock market.

``It's a very positive outcome for Taiwan and the region because trade will expand,'' said Nicole Sze, a Singapore-based investment analyst at Bank Julius Baer & Co., which manages $350 billion in assets worldwide. ``Overall, the win provides a stabilizing factor for politics in Asia.''

The MSCI Asia Pacific Index added 0.5 percent to 136.48 as of 7:14 p.m. in Tokyo, gaining for a second day. Half of the index's 10 industry groups advanced. The Standard & Poor's 500 Index futures contract rose 0.3 percent.

Taiwan's Taiex index surged 4 percent, the most since Feb. 14, extending last week's 4.5 percent increase. Japan's Topix index gained 0.3 percent to 1,224.15. Markets in Hong Kong, Australia and New Zealand are shut for holidays.

Nippon Steel Corp. and Singapore Airlines Ltd. advanced on speculation costs will decline after crude oil prices fell.

Transport, Investment

Overseas investors bought a record NT$57.9 billion ($1.9 billion) in Taiwanese shares today.

Taiwan Semiconductor, the world's biggest custom chip manufacturer, gained 4 percent to NT$67.40, the most since Jan. 29. Hon Hai Precision Industry Co., Taiwan's largest contract electronics maker, rose 5.4 percent to NT$185.50. Cathay Financial, the island's biggest financial-services company by market value, climbed 7 percent to NT$87.60.

Kuomintang party candidate Ma won elections on March 22 with pledges to begin direct flights to China and work toward a common market with the mainland. Ma also promised to ease restrictions on Taiwanese spending in China. Companies including Taiwan Semiconductor Manufacturing and Cathay Financial have invested $150 billion in the mainland, the island's biggest export market.

Eva Airways Corp., Taiwan's second-largest carrier, surged 6.9 percent to NT$20.85. Evergreen Marine Corp., the island's biggest shipping line, gained 2.2 percent to NT$30.

Taiwan has limited direct shipping, air and postal links with the mainland since the Kuomintang retreated to the island in 1949 after losing China's civil war to the Communist Party.

Stamp Duty

Citic Securities, China's largest stock brokerage by market value, lost 5.7 percent to 55.73 yuan. Haitong Securities Co., the No. 2 brokerage, tumbled 7.4 percent to 32.11 yuan.

China's CSI 300 Index jumped 7.3 percent in the previous three trading sessions after the China Securities Journal said the government may cut a tax on stock trading.

The benchmark, the world's best-performing stock measure last year, has tumbled 28 percent this year on concern tightening measures by the government will hurt profit at a time when the U.S. economy is slowing.

``There's disappointment that the government didn't end up doing what the market expected,'' said Yan Ji, an investment manager at HSBC Jintrust Fund Management Co. in Shanghai, which oversees the equivalent of about $517 million in investments.

Nissan gained 3.6 percent to 890 yen in Tokyo, while Honda Motor Co., Japan's second-largest carmaker, increased 2.6 percent to 2,950 yen.

Nissan Chief Executive Officer Carlos Ghosn said revenue for the next fiscal year will exceed the current year's target, with higher sales in emerging markets including Russia and the Middle East countering slowing demand in the U.S. and Japan.

Non-U.S. Earnings

``Japanese automakers have become much less dependent on North America,'' said Masaru Hamasaki, a Tokyo-based senior strategist at Toyota Asset Management Co., which manages the equivalent of $3.3 billion. ``Sooner or later, investors will have to realize the earnings outlook for Japanese companies isn't only determined'' by the U.S.

Nippon Steel, the world's second-largest producer of the construction material, gained 4.2 percent to 493 yen. JFE Holdings Inc., the No. 3 steelmaker, added 3.8 percent to 4,660 yen.

Oil fell as much as 1.6 percent to $100.02 a barrel in electronic trading in New York on concern an economic slowdown in the U.S. will reduce demand. Crude reached a record close of $110.33 on March 13.

Lower Costs

Singapore Air, which announced on March 20 it will increase a ticket surcharge because of higher fuel costs, gained 3.7 percent to S$15.02. Malaysian Airline System Bhd., the country's biggest carrier, added 3 percent to 3.48 ringgit.

``Anyone who uses these commodities would benefit'' from lower prices, said Hans Goetti, who oversees $10 billion in assets as chief investment officer at LGT Bank in Liechtenstein AG in Singapore.

Hanjin Shipping Co., the largest South Korean shipping line by sales, added 7.4 percent to 38,450 won, the biggest gain since Jan. 31. Hyundai Securities Co. resumed coverage with a ``buy'' recommendation and six-month price estimate of 46,000 won.

Maeda Corp., a Japanese construction company, plunged 12 percent to 269 yen, the most since April 1998, after saying its full-year loss will increase because of charges for deferred tax assets and costs to cut jobs.

To contact the reporter for this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net; Chan Tien Hin in Kuala Lumpur at tchan@bloomberg.net

Last Updated: March 24, 2008 06:16 EDT