The British number one beat the Spaniard 6-2 6-3 to remain on course for a second successive title after winning the Thailand Open last week.
Defending champion Nadal beat American Mardy Fish 7-5 6-1 in the last four.
Murray broke his opponent three times in total as he raced to victory in one hour 21 minutes.
Looking ahead to Sunday's final he added: "I think he's played some very good tennis the last couple of matches. He's always tough. He won here last year, so he likes the conditions."
Nadal faced a tougher task in his semi-final against world number eight Mardy Fish.
"I hope that I can play a fantastic match [tomorrow]," said the top seed.
"My opponent will be very difficult, so I have to play my best match if I want to win the tournament with the title.
"But for me, being in the final here is a very, very good result. I'm very happy about it. I'll just try to do my best and enjoy a difficult match," he added.
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