WRAPUP 3-Zardari wins Pakistan election; bomb kills 16

* Zardari clear winner

* Bomb kills at least 10

* Pakistan blocks fuel at Afghan border crossing

By Augustine Anthony

ISLAMABAD, Sept 6 (Reuters) - Asif Ali Zardari, the widower of former Pakistani prime minister Benazir Bhutto, swept to victory in a presidential election on Saturday.

Underscoring the problems he faces, a suicide car bomber killed 16 people in an attack on a police post in the northwestern city of Peshawar. At least five of the dead were policemen, and the blast wounded about 40 people.

Investors and foreign allies led by the United States hope the election will bring some stability after months of political turmoil and rising militant violence. The uncertainty has dragged stocks and the rupee sharply lower.

Members of the two-chamber parliament and four provincial assemblies voted on a replacement for deeply unpopular Pervez Musharraf, who resigned last month.

Zardari, who had been widely expected to win, secured 480 out of 702 electoral college votes, according to unofficial Election Commission results.

"It's not only a victory for Mr Zardari and the Pakistan People's Party but it's a victory for ... Benazir Bhutto's dream of a democratic political system," said Bhutto party spokeswoman Farzana Raja as party workers chanted "long live Bhutto".

Bhutto was killed in a suicide attack on Dec. 27 last year, weeks after returning from years in exile. Her party now holds the presidency and leads the government.

Zardari was a polo-playing playboy in his younger days who later spent years in prison on charges he says were politically motivated.

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

The bomb in Peshawar destroyed the post and brought down roofs of nearby buildings and some people were under the rubble, said provincial police chief Malik Naveed Khan. The bomber's target was probably the provincial assembly where members were voting, he said.

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