The WSJ reports:
TAIPEI, Taiwan -- Taiwan's opposition Kuomintang won a decisive victory in legislative elections Saturday, raising expectations it can reclaim the presidency in March and improve ties with China.
The Kuomintang won 81 of the 113 seats, beating predictions from analysts that it would win about 75 seats and providing powerful momentum to Kuomintang presidential candidate Ma Ying-jeou heading into the March 22 election.
Read it here (subscription required)
The significance of this is that the Kuomintang is likely to move strongly to repair ties to the mainland. The WSJ, being what it is, of course emphasizes that this will open the way to greater Taiwanese investment in China, but the political ramifications are far larger and the new policy is likely to reduce tensions throughout the region.