UPDATE 1-Pakistani legislators begin vote for president

(Updates with vote begins)

By Augustine Anthony

ISLAMABAD, Sept 6 (Reuters) - Members of Pakistan's parliament and four provincial assemblies began voting in a presidential election on Saturday to choose a replacement for Pervez Musharraf, who resigned last month.

Asif Ali Zardari, the widower of former prime minister Benazir Bhutto, whose Pakistan People's Party (PPP) heads a coalition government, is expected to win. The result is due later on Saturday.

"God willing, the PPP has a clear majority and the PPP will win. Mr Zardari will become president and will make the democratic and parliamentary system strong," PPP spokeswoman and member of parliament Farzana Raja said on her way in to the assembly to vote.

Investors hope the election by members of the two-chamber parliament and four provincial assemblies will bring some stability after months of political turmoil that helped drag stocks and the rupee sharply lower.

Whoever wins will have to contend with a host of problems that have raised fears for the prospects of the nuclear-armed U.S. ally, including surging militant violence and an economy in crisis.

Zardari, known as a polo-playing playboy in his younger days, was thrust into the centre of politics by his wife's assassination on Dec. 27.

A February parliamentary election win by their Pakistan People's Party (PPP) made him one of the most powerful figures in the country.

His decision in August to begin impeachment proceedings against Musharraf led to the latter's resignation, and cleared the way for Zardari to win the top job.

His two rivals for president are Saeeduzzaman Siddiqui, a former judge, nominated by ex-prime minister Nawaz Sharif's party, and Mushahid Hussain Sayed, a senior official of the party that backed Musharraf and ruled under him.

The PPP has the most electoral college votes and despite some doubts about Zardari's suitability, party members will stick by him, making victory virtually a foregone conclusion, analysts say.

JAIL, DOUBTS

Zardari, 53, spent 11 years in jail on corruption and other charges stemming from his time in government when his wife was prime minister in the 1990s. He was never convicted and said the charges were politically motivated.

But in an indication of the doubts Zardari faces, a poll by Gallup Pakistan found only 26 percent of about 2,000 people questioned thought he should be president, while 44 percent didn't want any of the three candidates.

Political uncertainty, exacerbated by a split in the PPP-led coalition last month, together with security and economic worries have sapped investor confidence and dragged Pakistani stocks down 34 percent this year.  Continued...